Who Pays the Tariffs: "The Greatest Economic Boom" vs. "The Biggest Bubble" — What Lies Ahead After Trump's Declaration of an "Unprecedented Economic Boom"

The LRC blog post dated September 15 warned that while President Trump predicts the "greatest boom in history," the reality is the "greatest bubble in history." The underlying issues include increased domestic burden from tariffs, expectations of interest rate cuts, and an expanding fiscal deficit. The CBO estimates that the cumulative deficit for the 2025 fiscal year reached about $2 trillion in 11 months. In the market, expectations for a Federal Reserve rate cut have intensified, and there was a historic surge in stocks in April following a shift in tariff policy. On social media, supporters are optimistic, claiming "the real economic boom is yet to come," while critics are concerned about the pass-through costs of tariffs and the sustainability of the deficit. In the short term, there is a rally, but in the long term, there is a clash of perspectives between supply-demand and fiscal constraints.