New residential building permits is one of the best leading indicators of recessions.
Here's how you can easily make it even better.
(And what it's saying now)...
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Building permits are a great leading indicator because they are an early step in the residential construction process.
We know that residential construction is a critical part of the business cycle, so getting an early lead on this is important.
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Big declines in building permits lead recessions because it anticipates declines in construction activity and therefore, residential construction related employment.
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But here's the economic reality of how tariffs impact the economy and why they should be used carefully...🧵
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The arguments or the stated goals of tariff policy are clear – protecting current American jobs from unfair foreign competition, reshoring manufacturing plants and high-paying jobs, and closing large trade deficits.
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However, the economic reality of tariffs is unlikely to achieve these goals for the following reasons.
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