No shit.
This is literally in the first paragraph of every economics textbook when they talk about tariffs.
Donald Trump didn’t win the Presidency by reading textbooks.
How do you get by in life without reading? I mean, don’t you have to know what the symbols on clocks mean to tell time?
don’t you have to know what the symbols on clocks mean to tell time
not all types of clocks.
Numbers aren’t words duh.
“Today’s show is brought to you by the letter 3!”
And you don’t need a textbook to understand how the very basics of business work. You know, the thing people seem convinced he understands? A fucking toddler has more knowledge than Trump. The United States of America doesn’t have two brain cells to rub together
They heard lower taxes, and simply misunderstood that tariffs are another form of taxation.
They heard whatever they wanted to hear, because that rambling shitgibbon said everything to everybody.
They heard that from a proud liar. It’s not a secret he lies constantly
He won it by taking bribes from billionaires, like a true politician
Clearly we need to add those to the banned books list
No, the first page is how it introduces inefficiencies into a supply/demand equilibrium, resulting in a lower quantity supplied and at a higher price.
No one who every studies economics, even in passing, would even consider another country paying a tarrif for something you buy. The concept is just… what?
Nobody who voted for Trump read that book homie.
Nobody who voted for Trump read[s]
that book homie.Fixed that for ya
My friend just got into a fight with some MAGATs on facebook about why we need things like civics education so we know what we’re voting for.
You’ll be shocked to learn the MAGATs called him a communist for daring to want to educate them. They don’t even want to open the textbook let alone read it.
It’s a certainty, not a fucking "likelihood’. That’s how they work.
You mean there’s no chance that Wal-Mart might choose to absorb the increased prices out of the goodness of their hearts? :o
Well, the far-right courts made that illegal for publicly-traded companies, so, no.
I feel like no one bothered to campaign against Trump… until… AFTER he won
Everything he will do contributes to anger, division and the collapse of the United States.
It doesn’t even matter:
https://www.axios.com/2024/11/18/consumer-confidence-trump-republicans-white-house
Turns out, a lot of consumer mood is literally just people’s social media feeds. Even if prices go up and QoL goes down, on average, consumers might feel better simply because Trump being in office makes them feel good.
I am not going to point out how monumentally problematic this is… Nope. There’s definitely no bad precedent for that.
Turns out, a lot of consumer mood is literally just people’s social media feeds. Even if prices go up and QoL goes down, on average, consumers might feel better simply because Trump being in office makes them feel good.
Well, we just were told that nearly all economic indicators pointing to a good economy was not “really” good because people just weren’t feeling it. Even if things were actually better. Sure, not everyone is invested in stocks, so that’s not really saying much and people don’t really see how things like GDP are going to help them make ends meet. Understood. But nearly everything was turned around, or turning around, under Biden.
Still not good enough - the Democrats apparently did nothing for the price of eggs so voting for donvict was going to make things “better”, even if they really won’t. And now a whole lot of dipshits are saying everything is better, even though donvict is not in office yet. WTAF.
/facepalm
It’s even simpler than that, it’s people being told what to think.
I think “people” speaking very generally used to not read a ton of news, heard stuff from the grapevine, and so on. “Elites” and news junkies had somewhat more monolithic sources.
And that’s not true anymore. Nearly every “average” person’s life is now dominated by a personalized feed, a podcast, TV, radio, chatroom, whatever, and it’s having an outsized influence compared to their observations of reality now.
It’s my belief that there’s basically nothing Biden could have done to alter this (other than regulating algorithms, and it’s far too late) and ultimately it’s the DNC’s fault for “taking the high road” and not playing the propaganda game.
But the question is, will American manufacturing make up for the costs? Or, will American manufacturing just raise their prices to match the tariffs and lump the profits into their executive bonuses. They deserve it after all for being smart enough to raise prices.
American manufacturing CAN’T, it would take years, decades honestly, to get back the capacity to make all the crap we’ve outsourced to other countries.
And this is the absolute brain rot fantasy of tariffs that I keep explaining to these idiots, and keep getting blank stares or awkward silences.
Tariffs are 100% punitive, without a domestic/alternative sourcing strategy. They can work long term to reduce a foreign nation’s competitive advantage in an industry while allowing a domestic industry space to exist, but that only works if there’s a domestic industry that already exists (at enough scale to meet demand) or a long term government program to nurture and build those industries - education/vocation training, regulatory concerns, infrastructure development, raw materials availability, etc
Tariffs Chinese steel/electronics/machine tools/etc into oblivion? Either buy the imported at a high price, or buy the domestic at a slightly less high price - but the cost is always carried by the consumer no matter what.
And they want to kill the CHIPS act, which was going to build some of that local supply.
IMO that’s the height of economic policy stupidity because if/when Taiwan gets invaded, China will own nearly all semiconductor manufacturing outside of the highest end fab houses such as Intel or GlobalFoundries. The future of domestic manufacturing is high tech or specialty like Corning glassworks or L3-Harris, even car manufacturers get beat out by imports with our current tariff structure
And then there’s the ensuing trade war that always happens, with the countries retaliating with their own tariffs to the US. Tariffs are a lose-lose scenario, just like they were in 2019.
And beyond that, it will incentivize further automation rather than more blue collar jobs.
More like generations IMO
This is largely accurate unfortunately. A good example is Apple. They tried to make a high-end desktop computer manufactured in the US. To do this they needed a specific type of screw. In the area near their factory, they only found one machine shop that could make the screw and they could guarantee an output of 50 screws per day after a 3 week lead time to tool up. And that was the final offer.
When they finally moved to China, they submitted the same request. Multiple vendors appeared offering thousands of screws per day and if they wanted to place a bigger order the company would set up a new factory just to produce those screws and could output tens or hundreds of thousands per day depending on requirements.
Another example is the iPhone and Gorilla Glass. There were a few Chinese companies in the running to manufacture the glass panel that would go on top of the phone. The one that got the contract, in anticipation of getting the contract, had already purchased the machine to form the glass and had samples ready for inspection at the contract signing.
We have allowed our business climate to become so bogged down in red tape and liability and lawyers and insurance, that most American companies are simply unable to execute at the same speed as China when it comes to manufacturing.
I would absolutely love to get more manufacturing back in the US. But the process of outsourcing is not going to get unwound overnight. It took two decades to move everything to China, even if the whole country agreed that was a mistake it would take another two decades to bring it back. Because as the Apple screws demonstrate, it’s not just about the factory that produces the widget. It’s about everything that goes into that factory, the companies that make the parts and the screws and the plastic. When you deal with China, they are all right there and they are all ready to go. Same can’t be said for the US.
I was sorta on board until you blamed regulations as a reason businesses can’t have manufacturering I. The US.
Regulations are written in blood. Stop pretending like a living wage and no slave labor is a bad tbi g inhibiting production.
Tarrif the snot out of the slave wage countries.
Unfortunately, the United States is also a slave country within it’s prison system.
Want a slave? Just trump up some nebulous charges about them, so to speak. Profit.
While youre correct, it’s worth noting that alot of the reason China can outmanufacture us is the lack of those sane regulations. Nets for suicidal factory kids and all that. Thing is, the tarrifs also arent just being applied to slave wage countries, but the entire world basically
An awful lot of regulations are written in blood. I am not suggesting we relax any of them. I’m talking about the endless supply of permits and forms and local government licenses and that sort of thing. There is an awful lot of regulation that does absolutely nothing to increase safety, it’s just bureaucracy. We could get rid of all that without impacting safety.
I think we know
I think you guys know.
If some other countries are any indication, not only will they raise the prices but they will raise it way more than the tariffs and just blame on tariffs and with time people will just think that is the way it is. “X cost 3 times as other countries? That is because the tariffs” no mind that the tariffs is like 50% and not 300%. Like they already do with gas prices. Gas go up immediately when oil prices rise but only goes down, if ever, for new stock.
During his first term Trump put a tariffs on Washing Machines. The price of imported washing machines went up. The price of domestically manufactured washing machines was also raised. Even the price of dryers — which didn’t have a tariff — went up on both imported and domestically manufactured appliances.
I have yet to see an economist that thinks Trumps tariff plans will benefit the working class.
Those prices entirely rebounded by the end of 2019. Thats how tariffs work. It became more expensive to import, companies slowly replaced imports with cheaper local goods, the cost settles.
There are surely instances where it didnt rebound entirely but thats not one of them.
That doesn’t change that putting the tariff in place was a stupid idea that didn’t help anyone. Rebounding after the removal of the tariff doesn’t undo the damage done while it was in place.
Didnt help anyone? You can’t think of a single way it might have helped?
Overall, no, I do not believe they helped anyone.
And even if they did, they still did more damage to everyone else than any small group of people they may have helped. Which is still reason enough to say that it didn’t help anyone, because, as a group, the country was worse off with them in place.
Am I one of the people damaged by higher washing machine prices? How would I know?
That is exactly what US steel did in response to the steel tariffs back in Trump round one.
100% guarantee price raises across the board, even for stuff not affected by tarrifs/mass deportation labor shortages.
It’ll be covid all over again, an excuse to price gouge the fuck out of those who can least afford it.
If companies are going to suck consumers dry just because they can, they’d better put Republican’s name on it.
Are you kidding ? This is absolutely going to be blamed on Biden, loudly and repeatedly.
I know I know, Walmart is in the GOP’s pocket. But if the DNC knows what’s good for them they’ll take any scraps they have from Harris 2024 and painting the entire Republican movement as lovers of raising prices on Americans.
They won’t.
Yes, but don’t worry. Elon and Trump will be FINE. Stop worrying, everyone!
Wonder who they who are they gonna blame then?
It will be blamed on Obama’s missing long form birth certificate and the bulge in Michelle’s skirt. Hillary’s true remark on the deplorables. Kamala’s cackle. Biden’s age.
What are you talking about? It’ll all be Biden’s fault.
It’s crazy how so many GOP supporters didn’t know this…
They’ll still find a way to blame Team Blue for the inflation.
Thanks OBAMA!
They voted for nonsense looks like they are getting nonsense.
How will they call the new inflation and how are they going to pin this on not Trump. Curious how this is going to play out.
So nice of them to say this after the orange fuck was elected. Heaven forbid they tell their customers that when their customers could actually do something about it.
What incentive do they have to tell people that ahead of time? Instead of propping up the prices by 10% to deal with the tariff they can increase it by 20% and pocket the extra, then blame it on China. Worked during the Covid inflation, why wouldn’t it work now?
Oh I know they have none. I just love that they’re saying it at all – being silent on the matter until said tariffs come to pass would have at least given them the “duhhhh we’re dumb too we didn’t know that either, oh well” excuse.
China will pay for the tariffs in the same way Mexico paid for the wall.
Realistically it will shift more work to India, vietnam, mexico. I’m not in supply, but I’m pretty sure my company has started shifting out of china in prep for this.
Didn’t part of the wall fall over into Mexico a while back?
Gonna be real neat watching Republicans turn on corporate America and accusing them of price gouging when (for once) they’re not.
They won’t. Blame the last administration, rinse and repeat.
just like mexico paid for his ‘wall’
That wall probably bought him a lot of renovations at Mara Lago.
Yeah, I mean I knew that, you knew that, Americans are so uneducated that the majority had no idea how basic economics work.
Well FAFO, we’re all going to learn the hard way I guess.
And fuck those of us who already knew the lesson. Its like school but without getting to go home at the end of the day. And just like school, the kids who need it probably wont pay attention
First of all walmart doesnt have to do this, they are choosing to.
Second, last time trump did tariffs prices went up in the following months, and then returned back to baseline following that.
There will be a reactionary period once they are placed. Walmart will either shift to buying more locally to maintain the most profit they can, or a competitor will undercut them.
Buying local is an option to evade paying tariffs on imported goods.
But what do you do if buying local is no real option?
I’m thinking of coffee, chocolate, computers, mobile phones, game consoles, cars, etc.
The I voted for him for cheaper eggs crowd are about to call this fake news.
It’d be kinda ironic if eggs were about the only thing that didn’t rocket up in price…
