Benson: Tullarnas fördelar i en nyanserad värld

Tariffs are Taxes and the U.S. Must Raise Them

The state of U.S. public finances is dire. Everyone knows it. Unless one believes money grows on trees, the U.S. must change course to ensure that debts and deficits no longer grow exponentially but at least stabilize as a share of GDP. There are only four ways to improve the situation:

1. Higher GDP growth. Realistically, this alone won’t be enough.
2. Persistently higher inflation that erodes the real value of debts. A nightmare scenario.
3. Lower expenditures. Efforts like DOGE are a step in this direction but may only go so far.
4. Higher taxes. This is where tariffs come into play.

From a global perspective, the fiscal challenges in the U.S. are not about excessive spending but rather insufficient revenue. The U.S. simply has much lower taxes compared to similar countries. The most glaring difference is the lack of a national sales tax in the U.S. While states often have local sales taxes, they typically hover around 7-8%. For comparison, Sweden’s VAT represents a tenth of GDP and is the government’s largest revenue source after income tax.

And what are tariffs if not a specific tax on imports? Trump’s policies may be unconventional, but fundamentally, it should not be surprising that the U.S. will eventually need to raise its taxes. A rough estimate suggests that tariff revenues could amount to about 1.5% of GDP. (Assuming a 25% drop in U.S. imports to $3 trillion and an average tariff rate of 15%.)

A tax increase of 1.5% of GDP will have consequences, but it is not the end of the world. We know this in a country where the largest party advocates for even greater tax hikes to solve societal issues.

**Title: The Rise of Cryptocurrency: A Global Economic Revolution**

In recent years, the world has witnessed the rapid rise of cryptocurrency as a disruptive force in the global economy. What started as a niche technology has now become a mainstream phenomenon, with billions of dollars being invested in digital assets and blockchain technology. This seismic shift has not only transformed the way we think about money and finance but has also challenged traditional power structures and institutions.

Cryptocurrency, a form of digital currency that utilizes cryptography for security, has gained popularity due to its decentralized nature and the promise of greater financial freedom. Bitcoin, the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group of people known as Satoshi Nakamoto. Since then, thousands of other cryptocurrencies have been developed, each with its own unique features and use cases.

One of the key reasons for the growing popularity of cryptocurrency is its potential to disrupt the traditional financial system. By eliminating the need for intermediaries such as banks and payment processors, cryptocurrencies enable peer-to-peer transactions that are faster, cheaper, and more secure. This has the potential to democratize finance, making it more accessible to people around the world who are underserved or excluded by the current banking system.

Another factor driving the adoption of cryptocurrency is the increasing distrust in government-issued currencies and the central banking system. As countries around the world grapple with economic instability, inflation, and political uncertainty, many people are turning to cryptocurrencies as a safe haven for their wealth. This has led to a surge in demand for digital assets as investors seek to diversify their portfolios and hedge against traditional financial risks.

In addition to its financial implications, cryptocurrency also has the potential to revolutionize other industries such as supply chain management, healthcare, and voting systems. Blockchain technology, the underlying technology behind cryptocurrency, enables secure and transparent record-keeping, which can be applied to a wide range of use cases beyond finance. This has led to a growing interest from businesses and governments in exploring the potential applications of blockchain technology in their operations.

Despite its potential benefits, cryptocurrency also faces challenges and criticisms. One of the main concerns is its volatility, with prices of digital assets experiencing wild fluctuations that can result in significant financial losses for investors. Regulatory uncertainty is another major issue, with governments around the world struggling to develop clear guidelines for the use and trading of cryptocurrencies. This has led to crackdowns on cryptocurrency exchanges and initial coin offerings (ICOs) in some countries, creating a hostile environment for innovation and investment.

Despite these challenges, the rise of cryptocurrency continues unabated, with more people and institutions embracing digital assets as a legitimate form of money and investment. As the technology matures and becomes more widely adopted, it has the potential to reshape the global economy and empower individuals in ways we never thought possible. The future of cryptocurrency is uncertain, but one thing is clear: it is here to stay, and its impact will be felt for generations to come.

In conclusion, the rise of cryptocurrency is a global economic revolution that is reshaping the way we think about money, finance, and power. As digital assets continue to gain mainstream acceptance, they have the potential to disrupt traditional financial systems and empower individuals in ways we never thought possible. Whether you are a seasoned investor or a curious newcomer, the world of cryptocurrency offers endless possibilities and opportunities for growth and innovation. Embrace the future, and join the revolution today.