Trump has reprimanded businesses to increase prices. Do they have the choice?

When President Trump complained on Saturday that Walmart should “stop trying to blame prices” for imminent price increases, many economists have remembered the last time they heard a president concern for companies to increase prices.

It was last year, in fact, when President Joseph R. Biden Jr. cited “the greed of companies” as the reason why the Americans paid more for gas, food and rent, while diverting criticism that his policies had aggravated inflation.

And economists are generally no more convinced of the accusation when a republican leveled it than when a democrat did.

“Basically, what we see in both cases is that the president makes a policy of politics, this policy of politics leads to an increase in consumer prices and the president who committed the political error is to blame companies,” said Michael Strain, economist at the American Enterprise of the right.

In the case of Mr. Trump’s prices, which are set at 30% on Chinese imports until mid-August, the effects will affect the economy, either by increasing consumer prices, or, if companies absorb certain costs, which reduces the benefits of companies. These responses could stimulate inflation, slow growth and increase unemployment.

However, while traditional economists generally agree that there is nothing invisible to increase prices when business costs increase, this view is hardly universal outside the profession.