Tapate50
Well-known member
Best move those companies can make is move those shit boxes to other countries. We don’t want those facilities here.
They are a vast eyesore and drain local resources.
Nothing about them is appealing.
Economics Thread
- Thread starter sturg33
- Start date
They are a vast eyesore and drain local resources.
Nothing about them is appealing.
Think they could serve as HUBs for new communities across the country which would be great personally. We are going to get many of those builds here as it makes sense to have locally sourced for all countries as a matter of national defense.
Yes, it turns out there is a material difference between the impact of the batshit crazy tariff rates announced at first and that of the ones that were actually implemented. It doesn’t make it good policy just because less of that policy being enacted caused less inflation?
No No No No - The theory is that tariffs are inefficient and cause all these negative consequences so regardless of level we should have seen this play out clearly in real time. Despite tariff levels coming down from some initial proclamaions (some of which were due to a trade deal side that was better for America), they are much higher than what we had before and no material negative impacts have surfaced.
Trying to hedge that you are fine with a certain level is lol worthy.
I’m not fine with it, but if someone is going to hit me in the face, I’ll take an open hand over a baseball bat.
Again - Its about its impact economically. The tariffs were still increased across the board and in many cases materially from previous amounts.
Americans weren't 'taxed' - Economy hasn't been stalled - There are no empty shelves - American real wages are growing - Inflation is coming down to historical levels.
Its been bumpy to this point but that was the expectation.
nsacpi
Expects Yuge Games
except for growth being slower than it would have been otherwise and inflation higher than what it would have been otherwise
You mean the growth that most economists missed by 100+ bps on an annualized basis?
The same inflation that came in lighter than almost all estimates?
nsacpi
Expects Yuge Games
Corporate bankruptcies surged in 2025, rivaling levels not seen since the immediate aftermath of the Great Recession, as import-dependent businesses absorbed the highest tariffs in decades.
At least 717 companies filed for bankruptcy through November, according to data from S&P Global Market Intelligence. That’s roughly 14 percent more than the same 11 months of 2024, and the highest tally since 2010.
Companies cited inflation and interest rates among the factors contributing to their financial challenges, as well as Trump administration trade policies that have disrupted supply chains and pushed up costs.
But in a shift from previous years, the rise in filings is most apparent among industrials — companies tied to manufacturing, construction and transportation. The sector has been hit hard by President Donald Trump’s ever-fluid tariff policies — which he’s long insisted would revive American manufacturing. The manufacturing sector lost more than 70,000 jobs in the one-year period ending in November, federal data shows.
At least 717 companies filed for bankruptcy through November, according to data from S&P Global Market Intelligence. That’s roughly 14 percent more than the same 11 months of 2024, and the highest tally since 2010.
Companies cited inflation and interest rates among the factors contributing to their financial challenges, as well as Trump administration trade policies that have disrupted supply chains and pushed up costs.
But in a shift from previous years, the rise in filings is most apparent among industrials — companies tied to manufacturing, construction and transportation. The sector has been hit hard by President Donald Trump’s ever-fluid tariff policies — which he’s long insisted would revive American manufacturing. The manufacturing sector lost more than 70,000 jobs in the one-year period ending in November, federal data shows.
Consumer-oriented businesses with “discretionary” products or services, such as fashion or home furnishings, represented the second-largest group. This contingent usually tops the list and includes many retailers, and its retrenchment is a signal that inflation-weary consumers are prioritizing essentials.
Drop Shippers which is a great thing!
Then there is this nugget:
Among the total was a surge of “mega bankruptcies,” or filings by companies with more than a $1 billion in assets, during the first half of 2025. According to the economic consultancy Cornerstone Research, there were 17 such bankruptcies from January through June, the highest half-year number since the covid-19 outbreak in 2020. Consumer discretionary businesses, including retailers At Home and Forever 21, accounted for several of those filings.
I guess we are going to pretend these didn't start prior to Trump taking office.
You guys can do whatever BS you want to do but the reality is the impact of the Tariffs have been but a small fraction of what you proclaimed and now we are headed towards an economic boom.
nsacpi
Expects Yuge Games
Yes. Some of these reflect problems that began accumulating years ago.
Yes they obviously are but that is not how the article is framed or how you are trying ot leverage it in some form of an argument.
Just keeping you health care experts honest and will endlessly hold you accountable when 26/27 are absolute booms with the benefits extending to the middle class as oppposed to the abortion of economic system we have had for 30+ years.
sturg33
I
Spent Christmas at the brother's house who is a finance big wig at a large car parts national chain.
He said on average, their costs went up 10-12%, and they raised prices on consumers about 6-8%
I asked what he think ls tha tariffs cost them in total profit, and he said about $40M
Do with that what you will
He said on average, their costs went up 10-12%, and they raised prices on consumers about 6-8%
I asked what he think ls tha tariffs cost them in total profit, and he said about $40M
Do with that what you will
You should ask him to discuss with procurement how much suppliers slashed their costs from previously stated amounts. If there was no alternative sourcing options than probably not but then its a concentration risk that your brothers company never addressed and that is a problem.
'Profit' is also a loaded term in finance/accounting and could mean lots of things that aren't directly correlated to cash flow or actual business performance.
Fortunately, those domestic manufacturers/suppliers are getting increased demand as they are more competitive which will result in more gowth for them leading to MOAR jobs.
sturg33
I
He oversees pricing strategy so im not sure he will have much insight into procurement.
The $40M represents a half point to their net profit margins. I didn't think that sounded too bad but he said pretty substantial and impact theirs hiring and investment strategy.
He said the good news is that if the tariffs are lifted they will be able to keep the elevated prices bc consumers were willing to absorb them so it will increase their floor for the future
Ah so businesses are fine to implement 'unsavory' positions but we shouldn't expect them to absorb any changes in cost structure with an interest to national security and the future viability of hte country?
Do you know how that sounds and why there is such a rise in socialism amongst the youth?
sturg33
I
It appears to me they did absorb some of the costs ($40M) and the consumers absorbed the rest (roughly half)
Without any visibility to the cost reduction at the source, which I promise you with a good procurement department there would be, we are losing part of the equation here. But, if the business didn't de-risk themselves and only had the one supplier then they are victims of their own poor planning.
Also, 'finance big wig' is a nebulous term as finance is large at orgs. Unless he is the CFO or head of FP&A I'd have to label his opinion as mostly speculative, especially without any contacts in procurement to understand the full cycle.
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