In a recent gathering of Sioux Falls Rotarians, the discussion turned to the economic implications of tariffs. Joe Santos, the Director of the Ness School of Management and Economics at South Dakota State University, delivered insights into why tariffs might hinder trade. He explained that tariffs function as a tax on trade, which typically results in reduced trade activity.
However, Santos elaborated that the rationale behind implementing tariffs can vary. While tariffs can generate revenue, he pointed out that the U.S. primarily relies on other sources for its income. “The United States economy… generates 98% of our revenue from something other than a tariff,” he stated, suggesting that tariffs aren’t a responsible revenue source.
Santos further suggested that tariffs could be wielded as threats in negotiations, potentially leading to significant economic consequences. He noted, “It’s likely to have a very large effect, a very large negative effect,” cautioning that the impacts might only become apparent over time.
He underscored the immediate uncertainty tariffs introduce, which in itself can depress economic activity, describing it as a recessionary force. As pressures mount, these conditions tend to hinder business success and economic progress more broadly.
Additionally, the meeting featured a donation made to support The 22 Foundation, which works to combat veteran suicide. Brian Phelps, Executive Director of The Alliance and a fellow Rotarian, emphasised the dire need for veterans to find support and share their experiences. He shared alarming statistics, noting that about 25 veterans take their lives each year in South Dakota alone.
Phelps remarked on the importance of addressing these mental health issues, saying, “They need a place where they can be heard, where they can talk to people, where they can share their stories and reach out and get help.”
At a Sioux Falls Rotary meeting, Joe Santos discussed the negative effects of tariffs on trade, rationalising their use as a potential political tool. He emphasised that while tariffs decrease trade, their uncertainty can further slow economic activity. The meeting also featured support for The 22 Foundation, addressing the urgent need for veteran mental health resources in South Dakota.
The Sioux Falls Rotary meeting provided crucial insights into the multifaceted impacts of tariffs on local trade and highlighted the pressing need for veteran support. Joe Santos articulated the complex nature of tariffs and their uncertain implications for the economy, while Brian Phelps brought to light the significant issue of veteran suicide, reinforcing the Rotary’s commitment to community support.
Original Source: www.dakotanewsnow.com
