Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
It is Colorado's Morning News Marty Lens Gina Gondec at morning,
will tariffs and gas prices be putting a dent in
your summer plans? Once a U Boulder professor doesn't think so.
Speaker 2 (00:08):
Professor of Finance at the Leads School Business at CU Boulder,
Edward van Wessup, joins us now on the KWA Common
Spirit Health Hotline to talk more about it. Professor van Wessup,
thank you so much for your time this morning. Our
Business and Money editor Pat whatit are joining us on
this conversation as well? You wrote an article a little
bit explaining of why you think these tariffs won't be
impacting our summer travel plans. What are some of those
(00:31):
things that come into play of why you think we
won't be impacted?
Speaker 3 (00:36):
Well, and thank you for having me. I. You know,
the tariffs mostly are going to affect imported consumer goods,
especially inexpensive goods where there aren't a lot of profit margins,
so you can't pass along, so you're obligated to pass
along price increases. But you know, travel during the summer
is mostly services. It's hotels, it's you know, flights, it's
(00:58):
gas and for that really depends a lot more on
demand than anything else. And so unless something happens to
make consumers you know, not want to travel that I
just don't think they're going to matter very much.
Speaker 1 (01:11):
Are there any sorts of travel items though that people
do look at that that might be impacted by tariffs?
Speaker 3 (01:17):
So you can think of you know, I think again
it's got to be inexpensive consumer goods. And I honestly,
I just in writing that article, I couldn't really think
of any examples of that. You know, if you know,
if you're going to the amusement park, if you're you know,
going you know, especially if you're flying internationally, think about
(01:38):
taking a trip to Mexico or something like that, then
clearly tariff's not really going to matter. And I think
when at the you know, April second or earlier on
in the presidency of Donald Trump, we were worried that
demand would be affected because of all the chaos and
volatility in the stock market, But so far we just
haven't seen it. You know, consumer sentiment is down, but
(02:00):
that just hasn't translated into reductions in demand.
Speaker 1 (02:02):
I was going to ask professor, because maybe it's the
psychology of it all. We often talk about how interest
rates impact people, even if they're not looking for a
home or don't need to borrow money for a home.
Does this the notion of tariff psychologically maybe caution or
hasten people, or not hasten, but slow people down from
doing vacation and those kinds of plans.
Speaker 3 (02:21):
Well, you're right, interest rates certainly could matter if you're
talking about bigger vacation plans or people are going to
borrow money. And as I'm sure you know, long term
rates are high, and they've been sort of staying high
for a while now, I'm not sure that that's necessarily
directly caused by tariffs versus you know, things like the
ballooning debt, you know, deficit, the new budget plan that
(02:44):
doesn't seem to be tamping down on that at all.
And rates are high worldwide, so I could imagine that
having some effect, but I wouldn't necessarily attribute that directly
to tariffs.
Speaker 2 (02:55):
So, Professor, with that being said, is this still a
wait and see when it comes to play when it
comes to summer vacations or is it really just book
them when you can and when we see these in
our economy?
Speaker 3 (03:07):
You know, this is speculation, but I think uncertainty is
certainly high, right, Volatility is still high in the stock market.
We really don't know what's going to happen economically going forward.
So you know, from my own plans, I was just
planning for high uncertainty, and so you know, book now.
But make sure you've got options if something bad happens
(03:29):
to your own finances or some prices, just make sure
you can cancel that trip.
Speaker 1 (03:35):
Professor, Just clear things up. I wasn't trying to tie
tariffs to interest rates. I'm just saying the psychology of
making a move because of something that maybe isn't connected
to you, but you're fearful for some greater thing. But
setting that aside, are the tariffs in your view? Are
they having a desired effect or impact on the intentions?
And of course we've heard many different reasons the intentions
behind the tariffs, But are they having a good or
(03:56):
bad impact on the greater economy?
Speaker 3 (04:00):
Be honest, I'm not exactly sure what their intentions are.
As you say, I've heard a variety of explanations. You know,
so far, the effect on the actual economy has not
been big. If you look at the current second quarter
forecasts for GDP growth. It's you know, the Atlanta Said
puts it a little bit more than two percent. Personal
consumption expenditures are pretty strong, so they don't seem to
(04:25):
be affecting spending much. What other effect they're having. Honestly,
I'm not sure.
Speaker 2 (04:31):
The article is titled will Terris disrupt your summer vacation plans?
Probably not, finance experts says you can find it at
Colorado dot ADU Professor of Finance at Leeds School Business
at CU Boulder. It's Edward Van Wessup, Professor WESSIP. Thank
you so much for your time. As always,
It is Colorado's Morning News Marty Lens Gina Gondec at morning,
will tariffs and gas prices be putting a dent in
your summer plans? Once a U Boulder professor doesn't think so.
Speaker 2 (00:08):
Professor of Finance at the Leads School Business at CU Boulder,
Edward van Wessup, joins us now on the KWA Common
Spirit Health Hotline to talk more about it. Professor van Wessup,
thank you so much for your time this morning. Our
Business and Money editor Pat whatit are joining us on
this conversation as well? You wrote an article a little
bit explaining of why you think these tariffs won't be
impacting our summer travel plans. What are some of those
(00:31):
things that come into play of why you think we
won't be impacted?
Speaker 3 (00:36):
Well, and thank you for having me. I. You know,
the tariffs mostly are going to affect imported consumer goods,
especially inexpensive goods where there aren't a lot of profit margins,
so you can't pass along, so you're obligated to pass
along price increases. But you know, travel during the summer
is mostly services. It's hotels, it's you know, flights, it's
(00:58):
gas and for that really depends a lot more on
demand than anything else. And so unless something happens to
make consumers you know, not want to travel that I
just don't think they're going to matter very much.
Speaker 1 (01:11):
Are there any sorts of travel items though that people
do look at that that might be impacted by tariffs?
Speaker 3 (01:17):
So you can think of you know, I think again
it's got to be inexpensive consumer goods. And I honestly,
I just in writing that article, I couldn't really think
of any examples of that. You know, if you know,
if you're going to the amusement park, if you're you know,
going you know, especially if you're flying internationally, think about
(01:38):
taking a trip to Mexico or something like that, then
clearly tariff's not really going to matter. And I think
when at the you know, April second or earlier on
in the presidency of Donald Trump, we were worried that
demand would be affected because of all the chaos and
volatility in the stock market, But so far we just
haven't seen it. You know, consumer sentiment is down, but
(02:00):
that just hasn't translated into reductions in demand.
Speaker 1 (02:02):
I was going to ask professor, because maybe it's the
psychology of it all. We often talk about how interest
rates impact people, even if they're not looking for a
home or don't need to borrow money for a home.
Does this the notion of tariff psychologically maybe caution or
hasten people, or not hasten, but slow people down from
doing vacation and those kinds of plans.
Speaker 3 (02:21):
Well, you're right, interest rates certainly could matter if you're
talking about bigger vacation plans or people are going to
borrow money. And as I'm sure you know, long term
rates are high, and they've been sort of staying high
for a while now, I'm not sure that that's necessarily
directly caused by tariffs versus you know, things like the
ballooning debt, you know, deficit, the new budget plan that
(02:44):
doesn't seem to be tamping down on that at all.
And rates are high worldwide, so I could imagine that
having some effect, but I wouldn't necessarily attribute that directly
to tariffs.
Speaker 2 (02:55):
So, Professor, with that being said, is this still a
wait and see when it comes to play when it
comes to summer vacations or is it really just book
them when you can and when we see these in
our economy?
Speaker 3 (03:07):
You know, this is speculation, but I think uncertainty is
certainly high, right, Volatility is still high in the stock market.
We really don't know what's going to happen economically going forward.
So you know, from my own plans, I was just
planning for high uncertainty, and so you know, book now.
But make sure you've got options if something bad happens
(03:29):
to your own finances or some prices, just make sure
you can cancel that trip.
Speaker 1 (03:35):
Professor, Just clear things up. I wasn't trying to tie
tariffs to interest rates. I'm just saying the psychology of
making a move because of something that maybe isn't connected
to you, but you're fearful for some greater thing. But
setting that aside, are the tariffs in your view? Are
they having a desired effect or impact on the intentions?
And of course we've heard many different reasons the intentions
behind the tariffs, But are they having a good or
(03:56):
bad impact on the greater economy?
Speaker 3 (04:00):
Be honest, I'm not exactly sure what their intentions are.
As you say, I've heard a variety of explanations. You know,
so far, the effect on the actual economy has not
been big. If you look at the current second quarter
forecasts for GDP growth. It's you know, the Atlanta Said
puts it a little bit more than two percent. Personal
consumption expenditures are pretty strong, so they don't seem to
(04:25):
be affecting spending much. What other effect they're having. Honestly,
I'm not sure.
Speaker 2 (04:31):
The article is titled will Terris disrupt your summer vacation plans?
Probably not, finance experts says you can find it at
Colorado dot ADU Professor of Finance at Leeds School Business
at CU Boulder. It's Edward Van Wessup, Professor WESSIP. Thank
you so much for your time. As always,
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