Economist Mark Perry has been monitoring price trends for various goods and services since the beginning of the 21st century. His “Chart of the Century” highlights the changes in prices relative to inflation, with categories like college tuition, healthcare, and housing seeing significant increases compared to categories like home goods, clothing, and TVs, which have become more affordable. The affordability of televisions, for example, has improved by 97 percent since 2000, thanks to advancements in technology and free trade.
While Perry’s chart doesn’t include video game consoles, it is likely that they have also become more affordable over time, despite advancements in technology. However, the threat of new tariffs on imports by former President Donald Trump could change this. A recent analysis by the Consumer Technology Association predicts that video game consoles could become 40 percent more expensive if tariffs are imposed on imports from China.
The proposed tariffs are seen as a way for the government to increase tax revenue, but they may not lead to more domestic manufacturing or job creation. In fact, the opposite may occur, with a potential decrease in productivity and job loss due to higher costs for technology products. The gaming industry is a $24 billion global market, and the impact of tariffs could result in a $4.9 billion economic shrinkage, as per the CTA’s projections.
The push for more tariffs raises concerns about the potential consequences on consumer spending power and overall economic growth. Free trade has played a crucial role in making products like TVs and video game consoles more accessible and affordable. It is important for Americans to recognize the benefits of free trade and be cautious about policies that could disrupt this progress.
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