Here's the real kick about how Trump's tariffs are going to hike prices for everything: Once that happens, even if the tariffs go away, the prices are never, ever going back down again.
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It seems the goal is to lower the standard of living for those who are the most vulnerable who actually made real gains the past several years. He wants a permanent poverty class.
Isn't Trump deliberately manipulating the market for wealthy investors? He tells them ahead of time when he's gonna take everything. He targets specific industries. He even tries to target specific companies. It seems like this should be against SEC guidelines
Also, since this recession is based on costs being forced up drastically, even the "best corporations (lmao)" are limited in how much they can limit prices to help consumers.
In 2008, the recession was caused by corruption, but it didn't directly affect the costs of doing biz.
It is a good article about the impact of the tariffs, but literally nothing in it supports the "never, ever going back down again" claim. That's a one-off claim before shifting topic.
Tariff cuts normally do result in cost cuts just because domestic and foreign producers still compete on price.
If the tariffs last long enough to actually structurally affect prices, once (if) they go away why would any foreign manufacturer bother with dropping their prices the whole 20+% when they’ll only need to do a few percent to undercut US manufacturers?
/1 Because sellers *keep* undercutting each other to steal business until they reach a level where it isn't worth the risk. That's why the profit margin of the retail industry is under 5%.
Look at how much trouble OPEC has enforcing a price fix. That's just 12 countries. This is 190.
/2 It is possible to for a small number of suppliers to fix prices. But parts of the economy that *could* collude to fix prices (e.g., the diamond industry) were already doing it before this. For those industries, prices might stay high, but for stuff like steel, food, or cars, no.
At least not all the way. IF they drop it will only if they are trying to increase sales, but they will never drop them all the way back (same thing happened with a lot of stuff after the pandemic). They will try to squeeze as much profit as the market will bear.
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In 2008, the recession was caused by corruption, but it didn't directly affect the costs of doing biz.
Right?
Tariff cuts normally do result in cost cuts just because domestic and foreign producers still compete on price.
Look at how much trouble OPEC has enforcing a price fix. That's just 12 countries. This is 190.