8/6/25

Giffen tarrifs - "Nobel Prize" goes to Trump

There is a famous economic chimera  - Giffern goods. This term means that the increase in price leads to increasing demand for this goods. This, obviously, cannot  be realized in real world as the amount of money and goods are both limited and real run away is not possible. Locally and shortly, this effect can be observed as an outlier. Trump has invented "Giffen tarrifs"  - long term increase in money flow paid by importers. Ideal tool to push economic growth. I am sure that Trump deserves the "Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel". Then the prize has to be renamed  - Trump prize in economics. If his trick works then the old-fasioned economic theory is just a heap of old garbage!

Go, Trump, go!!!

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