We’ve been lied to for decades regarding the politicians having the American people’s best interests at the heart of all done for Americans. Now we know we were lied to ....
“What’s up with that! “
Picture an industry as a sine wave. Now picture a policy as another sine wave. For some industries the sine waves will hit peak/trough and the industry will be cancelled out. Others will hit peak/peak and the industry will soar. Now realize that for any industry there are dozens of other sine waves hitting it; the general state of the economy, other competitors, commercial demand, construction, etc. There is little 1:1 correspondence between an individual policy, say a tariff, and the corporation’s business, in a booming economy. The effect of one policy may be swamped by the other circumstances. Trying to draw a conclusion without reference to the general state of affairs is probably too simplistic. We are currently blessed with a Trump wave. I hope it lasts at least until the next elections, as these things tend to be cyclic...like sine waves.
If you buy an ax with an iron head that weighs 3 pounds that represents around $0.40 of raw iron. The hickory wood handle costs more than the iron head.
America is one of two nations in the world capable of a self-contained economy. The other is France. Trade is nice (says he who shaved this morning with a German double edge razor fitted with Japanese blade), but not essential for these two countries. The jig is up and the secret is out.
Charles Payne and Lou Dobbs are some of the few business people with good sense.
Let’s not forget about that Mid-Continent Steel and Wire, that nail company in Missouri that says they will soon be out of business.
The purchasing agents that buy steel can merely still issue requests for tenders to many providers not in China or Europe. One that comes to mind is vendors from India.
As the supply tightens, there might be some price increase but not near the 25% tariffed steel.
Free traitors are shocked that economics still benefit countries that manage them properly, just as they did when this country was founded.
It is just one small point but I was at the welding shop yesterday and they guys there said business was brisk. They were out of stock on several sizes of bottles and types of welding gas.
Light structural steel has gone up quite a bit since so much of it comes from mesico and that usually slows down a lot of building, or it has in the past when tariffs were added.
I also looked at a $450 welding helmet that I won’t ever own.
As with most end products; the cost of the materials is very small. Most of the cost is labor and overhead. And for larger dollar products that are bought on time; it amounts to a couple of dollars a month to cover the tariff. This has been way over hyped.
Alternative sources and import substitution are the normal responses to price increases due to higher tariffs. Increased employment and higher wages are usually required, which are in turn supported by the price increases to middle users and consumers, which price increases tend to exceed those justified by the tariff alone.
bmp
Maybe the reality of tariffs is happening.
If US tariffs are bad for the US economy, why is no one discussing why country X’s current and retaliatory tariffs are bad for X’s economy?
http://freerepublic.com/focus/news/3669470/posts?page=5#5
Thanks to: kosciusko51 for this anti tariff shredding reality!