Economics Thread

thethe said:
Fortunately for this drop seller the tariff rates are nominal at this point on Cambodia.

If you can't afford an extra 10% on your cost of materials then your business model really sucks.
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If everyone's costs go up 10% and their wages don't go up by a comisserate rate the first people who'll feel that blow will be people selling useless shit.
 
thethe said:
Yes, because you don't actually care about America. We understand your position clearly.
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No, I do want America to succeed because my family depends on the United States. I don’t actually care about American manufacturing enough to pay more for what I buy though.

As far as manufacturing employment goes, do we not already do much of the higher paying operational jobs domestically in companies that are running out sweatshops? The people making our socks in China or Vietnam aren’t being promoted to VP of global sales. So I’m skeptical that quality job creation will even be that strong if these same American companies just start adding line workers here in jobs that are already freely available.
 
mqt said:
No, I do want America to succeed because my family depends on the United States. I don’t actually care about American manufacturing enough to pay more for what I buy though.

As far as manufacturing employment goes, do we not already do much of the higher paying operational jobs domestically in companies that are running out sweatshops? The people making our socks in China or Vietnam aren’t being promoted to VP of global sales. So I’m skeptical that quality job creation will even be that strong if these same American companies just start adding line workers here in jobs that are already freely available.
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We need jobs for people who aren't able to become VP of global sales.

You'd rather support migrants than struggling Americans.

we understand your world view.
 
zitothebrave said:
If everyone's costs go up 10% and their wages don't go up by a comisserate rate the first people who'll feel that blow will be people selling useless shit.
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Whose costs would go up 10%?

This is where people show they don't understand the difference between COGS and Retail prices.
 
mqt said:
When do the federal spending cuts happen? All I’ve seen thus far is a cut of services offset by increased spending in other categories and less tax revenue to pay for it all.
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Right now I'm seeing a significant reduction in expenses March MTD as a result of hte work DOGE has done. I'm willing to see what else happens as Trump is in power for longer.
 
thethe said:
We need jobs for people who aren't able to become VP of global sales.

You'd rather support migrants than struggling Americans.

we understand your world view.
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Struggling Americans can find jobs man. They can’t find *good* jobs, but my point is that *good* jobs are not found on the floor of a textile plant.
 
mqt said:
Struggling Americans can find jobs man. They can’t find *good* jobs, but my point is that *good* jobs are not found on the floor of a textile plant.
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Many of them can't find jobs at all and the ones that are available are undercut by illegals doing it for pennies on the dollar because the governemnt previously subsidized their living.
 
thethe said:
Whose costs would go up 10%?

This is where people show they don't understand the difference between COGS and Retail prices.
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If it costs me 10% more to buy something it will likely be sold at 10% more. If I go for standard Keystone pricing, my $4 dollar shirt I keystone for 8 dollars goes up to 4.40, the keystone price 8.80 still an increase of 10%. So my options with a 10% price increase is to pass it off to the customer, or to eat it and be less profitable.
 
thethe said:
Many of them can't find jobs at all and the ones that are available are undercut by illegals doing it for pennies on the dollar because the governemnt previously subsidized their living.
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The jobs we’d be bringing in are the very ones any American citizen could freely get today. People aren’t unable to find a job to pay them $10-13/hour, they’re just not applying to those jobs. Also, those wages are so much higher than foreign labor that we simply cannot compete on a global stage.
 
zitothebrave said:
If it costs me 10% more to buy something it will likely be sold at 10% more. If I go for standard Keystone pricing, my $4 dollar shirt I keystone for 8 dollars goes up to 4.40, the keystone price 8.80 still an increase of 10%. So my options with a 10% price increase is to pass it off to the customer, or to eat it and be less profitable.
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Not how it works but I'm not shocked that you aren't aware of cost structures for businesses.

In your scenario your gross profit increases - Thats an option for hte buinsess but its not what they need to do in order to 'be whole'.
 
mqt said:
You think if we went to Modi and said “we’re about to price China out of our markets, lower your trade barriers and you can take that business” he would have said no?
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It wouldn't have exposed what the CCP is willing to do and see which of our 'allies' are actually with us.
 
mqt said:
The jobs we’d be bringing in are the very ones any American citizen could freely get today. People aren’t unable to find a job to pay them $10-13/hour, they’re just not applying to those jobs. Also, those wages are so much higher than foreign labor that we simply cannot compete on a global stage.
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This is jsut not true - manufacutring jobs are sparse and are better paying then the 10-13 dollars an hour.
 
India is easily the most important trade negotiation to watch. They hold a lot of leverage.

The US can not be successful without a deep alliance with them.
 
thethe said:
Not how it works but I'm not shocked that you aren't aware of cost structures for businesses.

In your scenario your gross profit increases - Thats an option for hte buinsess but its not what they need to do in order to 'be whole'.
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Youre not accounting for the labor cost increase of every worker making $20 an hour vs the $2 an hour they get today
 
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