Tariff uncertainty induces businesses to delay purchasing and investment decisions, amplifying the economic damage beyond what the tariffs themselves would cause by creating option value in waiting
causalpending
Speaker
Larry SummersEvidence Quote
“you're inducing enormous amounts of uncertainty. And when there's uncertainty people delay hoping that the uncertainty will be resolved. Why should I buy a washing machine till this is all clearer? Why should I buy a car till this is all clearer?”
Source
Tariffs, Decline, and the Promise of AI | A Conversation with Larry Summers and Niall Ferguson— University of Austin (UATX)Created: 8/11/2026, 6:52:24 AM
My Notes
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