Guess you have not heard about how tariffs work and now more tariffs added today will for sure slow economy as prices will go up 25-35% starting in Sept. just in time for holiday season shopping. Bad times ahead as Wall Street predicted a few months ago.
I know how trade tariffs work. They're designed specifically to render foreign trade with specific nations less viable, and thereby increase the incentive to source trade within a nation (or with other nations instead of the targeted nation). Bad times ahead for Wall Street- diminished profit margins, since there'll be less room for profiteering from outsourcing materials and labor costs to cheaper Chinese laborers with less (or no, in the case of institutionalized penal labor) human rights and workers' rights. But that means they'll have to source those materials, and that labor, from elsewhere instead, to achieve the next best profit margins still available to them. Or (GASP), they might just find that it's more profitable to get it all locally instead, and to NOT keep decimating the national workforce on an annual basis in the name of 'streamlining' (to be replaced by third-world workers with less of those bothersome worker's rights to bother about, and who can be forced to work far harder and far longer hours for far lower pay, because WE WANT HIGHER PROFIT MARGINS DAMMIT, and how else are we supposed to keep increasing our stock market valuation, and our primary stockholders' - namely, ME, and all my frat buddies'- personal wealth?)
Prices will go up? Sure, because the stockholders in Wall St are greedy SOBs who'll try their best to hoard all the profits they can, whilst passing on all the added costs to consumers that they can get away with. But that's only true of big multinational conglomerates- small and medium sized businesses who operate smaller, more localized supply chains won't be affected at all; and they'll see massive increases in revenues, as their more competitive prices undercut those of the bigger companies. Unless the bigger companies keep their prices down rather than increasing them, and write off the diminishing of their profit margins as an acceptable loss, to avoid losing their market shares in their respective industries. Now, what do YOU think will REALLY happen?
Walmart, food companies, clothing, technology, and basically everything will go up 25-35% due to tariffs. If you did not know, our small farmers have lost 60% of their income due to Trump tariffs and this will shut them down at this point. Americans will have to pay more for everything which means less money in the economy= recession just in time for 2020. You really do not know how tariffs will hurt the economy and people will lose their jobs. I know Trump supporters are uneducated, but this is crazy to not understand simple increases in products due to crazy rate hikes in tariffs.
No, IMPORT COSTS of such goods will go up 25-35% due to tariffs. You say "our small farmers have lost 60% of their income due to Trump tariffs and this will shut them down at this point"- prove it. Cite some evidence. Because that's the exact opposite of what tariffs actually do, in practice. Where they DO lose most of their income is being dictated to by the big wholesalers, forced to sell their crops at extortionately low prices, due to being undercut by the cost of imported agricultural products from other nations which have lower agricultural costs (primarily due to cheaper labor costs). Put those tariffs into effect, and the small farmers' produce won't be getting undercut to such an extent- as such, demand will rise, as will their wholesale price. Which is NOT the same as their retail price. Do you know much about economics?
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