General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHonest Query: If Trump imposes the 25% tariffs,
and the cost of A LOT OF stuff goes up AT LEAST 25%, BUT in two years, there are pronounced majorities in both Houses of Congress (voters CAN be fickle . . . . ), and the tariffs are deleted, THEN:
1. Do the prices EVER decrease, and/or
2. Would the deletion cause another economic upheaval?
multigraincracker
(34,326 posts)See US economy 1929.
Id suggest moving into cash and out of debt. There were people that did well because of the depression. They had cash to buy buy up real estate when it got very cheap.
Lovie777
(15,232 posts)ya think mankind would learn from mistakes as well as good stuff happening from the past. But, mankind tends to favor the darkside from history than the enlightenment.
I guess its easier to be evil maybe because of greed and power.
multigraincracker
(34,326 posts)It goes crazy and then a Phoenix rises from the ashes and reason takes over again. The Mutual InterDependence of Polar Opposites. We need crazy to define sanity. You need a devil to make a God and bad to understand good. The truth is that it is all gray, there is no black and white.
BadgerKid
(4,700 posts)Are always on the table.
Walleye
(36,426 posts)Trumpononics, its his economy now we need to tear into it the way they tore into Joe Biden. Every chance they got, every time the price went up five cents.
bearsfootball516
(6,519 posts)So while it seems good, it's not necessarily a good sign.
thinkingagain
(1,046 posts)When prices go up when they do come down its never to the original price.
Ex: something that was a $1.00 raised up to $2.00 then drops in price to $1.50 and consumers think they are getting a good deal and are happy.
Im no expert and it may be just my imagination but that is what Ive always felt.
Its kinda like the buy one get one free
I swear they double the price before the sale.
So you are actually paying full price for something.
Or liquidation sales
They go Im in tease the prices on everything
So for the first few weeks you either end up paying more than the original price or same.
Its only at the end when most things are gone you actually get a bargain.
Johonny
(22,243 posts)Thus the tariffs may not mean instant increases. As it will affect new inventory rather than existing stock. It is also pretty clear a lot of his economic team hates the tariffs. Meaning we're likely to see endless bluster and pull back. Trump often used tariffs and threats of tariffs for pump and dumping on the stock market.
His economy was so good, it took Biden several years to turn it around. Indeed, Biden is mostly blamed for Trumps awful economy. Trump is inheriting a strong economy, but there is no guarantee it won't sour. Indeed, it is almost impossible Trump won't screw the economy. As we saw with Biden, low interest rates, rampant spending and fucking up the flow of goods and services is a great way to have runaway inflation that never returns to where it was before. Biden was able to tame Trumps inflation, but he didn't deflate the economy.
ProfessorGAC
(70,613 posts)However, so many companies have let J-I-T run amok & have very low safety stock levels.
That was one of the primary causes of the extended "supply chain shortages" during COVID.
When panicked consumers overbought, the ridiculously low inventories on hand had no way to fill the pipeline.
I'm not convinced business learned any lessons there.
republianmushroom
(18,179 posts)Not the American way.
Bernardo de La Paz
(51,252 posts)In Depressions, cash is king and people buy much less and conserve cash. Thus the economy declines and prices decline to stimulate demand. Central banks reduce the cost of borrowing greatly.
Lobby for Canada re tariffs: https://www.democraticunderground.com/100219804157
Initially tariffs increase prices, but after a while the decreased demand causes prices to fall. However there are limits to profitability below which prices can't fall.
Restoring lower / zero tariff levels (after a tariff increase) would decrease prices somewhat but if they have already tumbled they might not decrease much.
moondust
(20,516 posts)Seems possible that prices of non-tariffed goods will increase to align with the tariffed goods, and execs and shareholders will get addicted to that easy money grab thanks to you-know-who.