The Meaning of a Weak Jobs Report

Paul Krugman: “It’s highly likely that what we’re seeing is the effect of Trump’s tariffs — or more precisely the uncertainty that his erratic tariff policy has created.”

“Contrary to myth, tariffs don’t necessarily cause high unemployment. They make the economy less efficient and poorer, but don’t necessarily reduce the total number of jobs. For example, Britain in the 1950s had high tariffs and import controls, but also full employment. The claim that Smoot-Hawley caused the Great Depression is a myth, one fostered in part by anti-Keynesians who didn’t want to admit that the problem was inadequate demand and the answer fiscal stimulus.”

“But Trump has brought something special to the mix: Not just high tariffs, but unpredictable tariffs. Since April 2 nobody (probably Trump included) has had no idea what tariff rates will be for the next few months, let alone for the long term.”

The Hill: Stunning revisions show US added 258K fewer jobs than first reported.