this post was submitted on 06 Apr 2025
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Explain Like I'm Five

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I have 0 maths or economy skills, so I do need it explained like I'm 5. They're in the news a lot atm but I just don't understand them

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[–] magic_lobster_party@fedia.io 5 points 1 day ago (1 children)

The official excuse is to incentivize Americans to buy American made products. If you want to sell goods in America, then it should also be produced in America. Red state voters think this sounds like a good idea, because it will bring back more low skill jobs to America (red state voters generally don’t like education).

The problem is that this is very reckless, and probably won’t change anything (except making things cost way more). It completely turns the global market upside down. Other countries will answer by trading less with America.

I believe what will happen over time (if this continues) is that US is going to get economically weaker. They will rely more on export of their own goods, and to compete in the global market they must reduce their salaries. The average American will get poorer. The low skill jobs are back, but the salaries are shit.

The rich will somehow get richer as always.

[–] CheeseToastie@lazysoci.al 2 points 13 hours ago

That was really easy to understand thanks