Soaring Costs Are Ironically Tariff-Proofing the Economy

As trade wars heat up, economic growth centers around one domestic industry

July 10, 2025 Ripple Effect — July 10, 2025 Should we be concerned about the economy – much less the stock market – as President Trump heats up his tariff rhetoric? Perhaps, tongue-in-cheek, we should first look at the data. Where are Americans spending their money these days – and how resilient is that spending in a world of higher tariffs? The latest troubling trend shows that Americans are spending more on healthcare – often in the form of “insurance” that doesn’t insure against anything – than on necessities like food and housing: Americans now spend more on healthcare than on groceries. U.S. healthcare continues to outpace overall inflation, thanks to high government involvement in mandates and subsidies. We note – somewhat jokingly – that if these trends continue, healthcare spending will be the entire U.S. economy by about 2150. Meanwhile, some forms of healthcare, such as cosmetic surgery, continue to rapidly-improve over time and costs decline. But where the government lays its hand on the scale, all Americans are burdened with the costs of a government-run healthcare plan, while still having the appearance of a private, free-market plan. ~ Addison 50 major companies that will likely fail to survive Trump's MAGA economy. Many have 5-star ratings. Most are "buys" per Wall Street. But they're dead companies. Click here to see the full list. P.S.  What caused the madness of America’s healthcare system? The blame starts with FDR. During World War II, wage and price freezes and a labor shortage led to employers coming up with the idea of providing health insurance. Today, your insurance is still tied to your job – but with the negatives of government plans and mandates that make it unwieldy. And it’s a problem that looks like it’ll get worse before – err, if – it gets better, as it's not a centerpiece of President Trump's Great Reset plan. As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.) How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. (Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.) Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com

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