Everyone needs a lesson in how tarrifs work. Tarrifs are a tax on thing that US companies buy. They are intended to make foreign products more expensive to protect domestic producers. So, the American company pays the tariff. They then pass that tariff on to their customer, either another company or an American consumer. Then, the country that the tariff had been applied to applies offsetting tarrifs on American goods.
When the product that the tariff is applied to can’t be produced in the US, think advanced microchips or Canadian softwood lumber, Americans pay more but still have to buy the foreign product. With the softwood lumber tarrifs the cost of building a home with Canadian softwood lumber went up by tens of thousands of dollars and Canadian companies laughed all the way to the bank. American consumers paid more and Canadian companies made record profits because the US can’t produce enough softwood lumber to meet its needs.
So, the price to American companies and consumers goes up and the cost of American goods overseas goes up. Americans pay the tarrifs and American companies sell less goods overseas.
America loses.
But think of all the failing business that will be super cheap to aquire! /s
Oh I have no doubt that the Blackrocks and Birkshire Hathaway’s of the nation are absolutely throbbing at the prospect. Literally diamonds. Those dusty old corpses won’t need their hourly viagra until 2030.
Lol the stock market went up by like 15% since he won or something like that. The big banks and holdings groups are wayyy up, same for tesla which just broke 1 trillion.
As it always does. In case you missed it all those things were hitting records all the way through Biden’s 4 years.
It’s a giant casino. And the only time real people feel it is when it crashes and suddenly shit costs way more than it did last week. It doesn’t matter to anyone worth less than 8 or 9 figures.
Yes. I was agreeing with you in the first place.
What I love… what I really love… is that this happened during the administration of Trump’s favorite president (other than himself), Andrew Jackson:
Hadn’t heard of this one, thanks. Americans are pros at not learning from history.
I thought this part was particularly funny/familiar:
It was a bill designed to fail in Congress because it was seen by free trade supporters as hurting both industry and farming, but it passed anyway.
Edit: That article lead me to this one, which gave me a good chuckle. How quaint: https://en.wikipedia.org/wiki/Petticoat_affair
these women, dubbed the “Petticoats”, socially ostracized Secretary of War John Eaton and his wife, Peggy Eaton, over disapproval of the circumstances surrounding the Eatons’ marriage and what they deemed her failure to meet the “moral standards of a Cabinet Wife”.
After further reading about Peggy Eaton’s childhood, kind of a bummer. Also, John Eaton pulled a King David/Bethsheba on her first husband, quite literally… That’s wild.
Once Timberlake told Eaton of his financial troubles, Eaton unsuccessfully attempted to have the Senate pass legislation that would authorize payment of the debts Timberlake had accrued during his Naval service. Eventually, Eaton paid Timberlake’s debts and procured him a lucrative posting to the U.S. Navy’s Mediterranean Squadron; many rumormongers asserted that Eaton aided Timberlake as a means to remove him from Washington, in order for Eaton to socialize with Peggy.
What a shithead. Literally sent him to fight pirates so he could bang the dude’s wife hahah
So in your example, I guess the tariffs don’t apply to Canada? Because the proceeds of tariffs go to the government of the country charging them.
I’m not sure what you’re asking. If you’re referring to softwood lumber the profits of Canadian lumber companies were at record levels because the US needs Canadian softwood lumber with or without tarrifs. The tarrifs didn’t affect sales at all so with the increased demand despite the tarrifs Canadian companies didn’t suffer at all. US consumers spent more and the money went to the US government which presumably gave some of the money to uncompetitive US softwood lumber companies to subsides their unprofitable operations. It’s a tax on US consumers.
Canadian softwood lumber companies pay a stumpage fee to sustainably harvest softwood on public land. US softwood lumber companies pay much higher prices to harvest lumber mostly on private land. It’s all about extracting the highest profit for the most wealthy people. Canada has a better system and the US is salty about it. The US has lost at the WTO every time but refuses to accept the result so it ignores its treaty obligations and just forges ahead with the illegal tarrifs which hurt US consumers.
Good. I hope he does it. Don’t let any of his yes-men or cronies tell him what a horrible idea it is. Let the whole fucking country burn.
Democrats, calling for deportations: Look at this disgusting tankie
This post is about tariffs.
… what
The joke is twofold:
- Some people, mostly authoritarian communists, claim that the ‘tankie’ is being used to describe anybody too far left.
- Democrats are by now very right on immigration.
Democrats will stop calling for deportation when they see what kind of bottom line putting people in labor camps brings.
Where so you think American farmers buy their fertilizer? Where they sell most of their soy and corn sell to? Maaaaany companies are either buying or selling to/from China. Many will go bankrupt, bany will struggle.
China is strengthening ties with Russia to replace u.s trade, and it shows that Putin is laughing his ass off at how he played a whole country, other than his I mean
TIL, lots of Trumps voters don’t even know how tariffs work and thought the foreign companies are the one who paid those instead of the domestic buyers themselves.
Even if, did they think prices would just stay the same? Tariffs only work if production is moved back home, which for many industries won’t happen, which means costs will be passed on to consumers.
Also, the costs would still be passed on to consumers even if the production was moved back home, because it will cost more in general. And gotta keep those profit margins up.
Doesn’t matter who the tax is levied against. All costs will be passed on to the buyer. They should be familiar with this idea. It’s the Republican’s key talking point against business taxes.
They’ll blame democrats for the price increases. Bet me.
Same as last time
Same as every time, this shit is so damn tiring
The US is at least 40 years removed from any kind of real electronics manufacturing at scale.
This kind of thing takes generational knowledge to get right and we outsourced that knowledge a long time ago.
We are now several generations from being able to manufacture electronics on the level.
Either trump has no idea how anything works or he’s actively trying to destroy the American economy.
He will just give out stimulus checks to make everyone think the economy is good. Somehow that’s not socialism though it’s American!
yep, warm up those money printers. And too bad for anyone who has saved a nestegg for retirement-- thats all getting watered down now. ah well.
Jokes on them, in 50+ years I’ve accumulated almost nothing anyhow!
He likes Russia so much that he wants the US to become like it. He’s following the post-USSR playbook. He’s trying to destroy the economy so he and his billionaire buddies can buy up the scraps for pennies on the dollar. Which will turn him into an oligarch and will keep him in power after his term is up. And he isn’t going to pay for any of it. He will steal money from the people like he did in his first term with his golf course and his cult following will keep giving him money and buy his crypto coins. That’s why he wants to get rid of cryptocurrency regulation.
Porque los dos?
Rich get richer, poor people suffer. Americans are so f dumb i cant take it
Can someone please explain to me why he STILL doesn’t have any understanding of how tarrifs work?
You’re making the mistake in that his intention is to improve things.
He doesn’t have to make things better, he just has to say he has made them better. That’s all he’s ever done and it’s worked.
yOu’Re FiReD
A candidate that expressed nuanced understanding of economic principles would have been less likely to win the election.
A candidate that instead promises answers that intuitively sound right. If imports are expensive, then obviously the big business owners will build domestic and give us more money. If you get rid of immigrants, then the business owners will have to pay more for citizen workers. Simple answers that are easier for people to believe in.
Attempts to explain nuance? That ranges from nerds overcomplicating things and/or those darned liberal elites trying to truck them.
This cuts both ways. In 2020 Biden won not due to a more sophisticated understanding of things, but simply because things were bad, and the other guy therefore was the obvious choice. So to overcome an incumbent, you just have to have people believe stuff is bad, and provide some believable explanation that you could fix it.
he STILL doesn’t have any understanding of how tarrifs work?
How do you STILL think this isn’t all intentional? They know what they’re doing. They don’t care if we can afford it or not. This is about the conservatives’ bottom line, lol. They don’t care about you, America, China or whether any of it works.
It doesn’t do anything for their bottom life because the tariff is something we pay TO CHINA
A tariff is what you pay to the government of the port of call to get the item you shipped.
When you pay $1000 for a DJI drone and it get’s to Seattle the US government says “pay us $600 or it goes back on the boat.”
The Chinese company sees literally zero impact other than possibly less orders and probably a wave of refused merch. Which they might keep some or all of the purchase price of anyway.
Russia wants to pit the US and China against each other to distract and destabilize them both. So all of this is great for Russia’s bottom line.
The tariffs got them elected. The fallout of them is a write-off and not their problem. They were the means to an end for votes and swaying opinions and they did their job.
I believe that he does, and he knows shit will cost more, but he ALSO knows that his followers have no clue whatsoever. So prices will increase, and he’ll blame it on one of their many “others”. Keeping them scared and mad is the key to their control over them
His followers know he’ll deliberately cause instability, that’s what they want.
Some people want more expensive shit as long as its made in america or with american goods. Thats the point of a tariff.
But not the idiots that said inflation was their main issue. Trump told them 3 ways he’s going to economically hurt them 1. Tariffs 2. Raising taxes (unless you are 1%) and 3. Mass Deportation.
Because he is so senile his brain can’t follow a 3 step logic chain anymore.
Fuck.
It hasn’t even started yet and I know that I have 4 more years of this stupidity news ever single day
Oh wait
Since Trump will install himself as a dictator, then die, we have a few decades of couche fucker Vance to look forward to, yeeeiii
I’m not convinced we’ll go even a single decade of this regime without total socioeconomic collapse.
The Hitler lasted from July 1932, and Hitler killed himself in April 1945 - 13 years.
Mussolini lasted from 1922 to his execution in 1945 - 23 years.
Stalin lasted 1924-1953 - 29 years.
Fascism inevitably implodes and crates untold suffering along the way, but you might have longer than you think.
The main difference is that in equal measure to being a fascist, Trump is an idiot.
Fascism and idiots - I couldn’t name a more iconic duo - though I do agree with you point… Trump is exceptionally stupid, and has surrounded himself with gibbering idiots like Musk and RFK.
…that said, when Trump’s heart inevitably explodes, Vance will almost certainly have competent (evil) advisors, and they’ll get (horrible) shit done.
Isn’t this exactly what Trump said Harris was gonna do and that he was gonna not do?
Vincent
yooooo name twinsies!
Mexico about to make a killing in shipping.
They already have been. China has been working at circumventing restrictions by basically offloading raw materials or parts to Mexico and having them build the product to ship to the US.
Hola world.
American Kazahstan.
I hope Trump turns out to be the best president in history. Prove me wrong, conservatives. I want to hear how it’s going by the fourth year.
Everyone who says he’s not the best President ever will be shot.
I mean, what do you think? He announced that. Apparently this is what the US-Citizens want.
It’s that damn reality that needs to be punished. Stupid facts and laws of economics making Trump look worse than he is.
I had similar thoughts in 2016 when he had a first attempt, and it was a dumpster fire. I’m not optimistic this time around.
Dumpster Fire has evolved into a Garbage Dump Fire.
As someone who works for a large US-based company, we are locking in large contracts ASAP for compute power to hopefully keep us sated and avoid these from being an extinction event. We were already discussing some vendors not offering supply contracts already because they see the writing on the wall for their own profit margins
I’m involved in the manufacturing sector. At recent trade shows, we’ve been hearing that a lot of companies were holding off on making decisions about purchasing goods and machinery until after the election, though no one was saying much specifically about what each candidate would mean for their decisions. This article seems to say the outlook isn’t super rosy and his initiatives don’t make a ton of sense.
I’m in manufacturing within China. While I’m not American and don’t work with American companies. Lots of our supply chain has said there is high levels of uncertainty in projects. Projects have been on hold for months.
Fuuuuuuuck me I wanted a new PC & a new laptop. How much time do I have before this hits?!
My phone was on its way out so I got something with better translation features and support for my move to Germany. Was it expensive? Yes. Is it less expensive than it will be? Also yes.
I wouldn’t be surprised if this causes scalpers to start hoarding goods again like they did during the pandemic. Artificial scarcity but still cheaper than the official price on Amazon or whatever.
Companies are pre-buying goods and laying off workers already, so why wouldn’t the citizenry?
Just so you know: Germany’s government basically imploded yesterday. Has been a long time coming, really.
Also, if you move to any of the big cities (FFM, Hamburg, Bremen, Berlin) you won’t need to speak German.
I’m aware. Been following that as well. I still trust Germany more than I trust the USA. I unfortunately can’t really move to one of the larger cities as it’s pretty cost prohibitive until my wife could find a job. We are going to live in a less populated town for a while and ramp up culturally and see how everything goes. She speaks Spanish fluently, so we may end up in Spain after some time. It’s hard to say.
As a german citizen: Good luck, and welcome to germany! Hope you have a great time here. There are many very very beautiful small towns which don’t costs much, but are usually still in the vicinity of larger cities. So you usually, if you plan correctly, you get the pro’s of both. Beautiful small historic city and if wanted the buzz of a big city withing an hour’s drive. Cheers!
New Ryzen 7 got released too. Looks cool
Things like this take a while to finalize, so you’re good for now. Just wait until Black Friday to buy anything, since it’s so soon and lots of computer stuff goes on sale.
FYI: companies will do 2 things to make black friday kinda suck these days
-
Prices will go up before black friday so they can have an exagerated sale/discount.
-
Some companies will make units specifically for black friday. Usually cheaper, less features, and sometimes less reliable.
Figure out what you want now.
Prices will go up before black friday
It’s before Black Friday now :P
Amazon show a “lowest price in 30 days” badge if the price is the lowest in the past 30 days, so companies that sell their products on Amazon will sometimes raise the price 30 days before Black Friday.
Some companies will make units specifically for black friday. Usually cheaper, less features, and sometimes less reliable.
This has always been the case. Same with outlets - some items at outlet stores are specifically made to be sold at the outlet.
-
