In this episode of the NPR Indicator podcast, the discussion centers on the economic effects of President-elect Trump's proposed tariffs and tax cuts. While Trump argues that these tariffs will finance tax cuts and stimulate the US economy by promoting domestic production, experts are skeptical. They warn that the tariffs could lead to a significant rise in consumer prices, likely outweighing any benefits from tax cuts, and the revenue generated would not come close to compensating for the lost income tax revenue. Additionally, the increased production costs from tariffs on imported materials could hurt US businesses. To illustrate this point, the podcast uses the example of a chocolate chip cookie, highlighting how globally sourced ingredients would become more expensive due to tariffs, ultimately raising the cost of everyday items.
