MACRO MESS.....EMERGES

03 Mar 2025 17:33 #1 by homeagain
www.axios.com/2025/03/03/trump-tariffs-price-hikes-goods


The big picture: The tariffs will see Trump make good on his campaign pledge to institute sweeping tariffs on America's trade partners.

Tariffs function like an additional tax on goods and are often passed onto consumers. Some retailers have already warned that they could be forced to raise prices.
Exactly how much of the tariffs' costs are passed onto consumers remains to be seen, but experts predict that by next year the tariffs will reduce Americans' after-tax income by 1%.
The tariffs are expected to hit working-class Americans especially hard.



REMEMBER WHEN I STATED END OF Q1 WILL BE THE GENESIS OF THE FUBAR.....I AM POSTING THE PERTINENT INFORMATION THAT CONNECTS THE DOTS FOR THAT STATEMENT........AND THERE IS SILENCE FROM THE COLLECTIVE....I WONDER WHY? YA, I KNOW
U THINK I AM TDS....BUT HEY, WHERE THERE IS SMOKE THERE IS FIRE, WE R ENGULFED IN A RAGING RACE TO THE BOTTOM....REMEMBER WHEN I STATED BY MY B DAY IN MAY?.......WATCH WHAT HAPPENS.....ALL OF THE ACTIONS TAKEN WILL BE DISASTROUS FOR THIS COUNTRY. THE DUO WILL HAVE DYNAMITED THEIR WAY TO THE DEPTHS OF HELL. WELCOME TO THE INFERNO

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04 Mar 2025 07:39 #2 by Freezeman
Replied by Freezeman on topic MACRO MESS.....EMERGES
I just wonder what you will come back with when your burning in Hell predictions are wrong again.

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04 Mar 2025 09:44 #3 by PrintSmith
Replied by PrintSmith on topic MACRO MESS.....EMERGES
Tariffs also act as an incentive to bring production back into the Union HA. I've used this analogy before, but I think it makes the issue clear.

Levi Strauss used to produce their jeans inside the US and they sold them for around $35/pair. When they exported their product to different markets, the cost of shipping, the cost of tariffs, the manipulation of currencies all made their product not an everyday item, but a luxury item in those foreign markets. Levi's solution? Move the manufacturing to Central America, where labor was much cheaper, which lowered the cost of producing each pair of jeans and avoided many of the tariffs. The result? Their jeans went from being a luxury item few could afford in foreign markets to clothing that was affordable to the foreign middle class, expanding their market. The move meant increased shipping costs to the US, but after moving production to Central America they could still sell their jeans here for the same price, $35/pair. Lots of American workers lost their jobs in the process, but Levi Strauss increased their sales, increased their profits, increased their share of the clothing market.

If we have to level a tariff on the importation of Levi Strauss jeans to push their sales down to encourage them to return at least enough manufacturing to supply the US market in order to hold onto their sales volumes, their profit margins, and their market share inside the US, why is that a bad thing for US consumers, US workers, and US tax revenue? By returning enough manufacturing to supply the domestic market, they are able to sell the jeans at the same cost as they were selling them prior to the addition of the tariff, and they still have enough foreign production to supply their foreign markets and keep their sales volume, their profit margins and their market share stable in those markets.

Why is that a bad thing for our consumers and our economy?

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04 Mar 2025 10:45 - 06 Mar 2025 06:49 #4 by homeagain
Replied by homeagain on topic MACRO MESS.....EMERGES

PrintSmith wrote: Lots of American workers lost their jobs in the process, but Levi Strauss increased their sales, increased their profits, increased their share of the clothing market.

BOLDED....when u implement this process, not just a singular time,but MULTIPLE TIMES ALL AT ONCE...WHAT DO U HAVE? extreme results....job loss which impacts everything....u can't erase an entire set of paradigms and not expect radical results.....by MAY this country will be facing a future that has never looked as bleak,except for the Dust Bowl depression......change is good when done in a sensible way,go fast and break things,altho sounds good....is NOT A SENSIBLE SOLUTION. NJMO

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04 Mar 2025 13:00 #5 by FredHayek
Replied by FredHayek on topic MACRO MESS.....EMERGES
Jeans are a great example. Use domestic raw materials like cotton and copper. Robot manufacturing.

Car manufacturers are moving production back to America too. And once again, robot manufacturing and using American steel instead of substandard subsidized Chinese metals.

Thomas Sowell: There are no solutions, just trade-offs.

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