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no_hypocrisy

(49,196 posts)
Mon Dec 9, 2024, 07:05 AM Dec 9

Honest 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?

12 replies = new reply since forum marked as read
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Honest Query: If Trump imposes the 25% tariffs, (Original Post) no_hypocrisy Dec 9 OP
The answer to question #1 is yes. multigraincracker Dec 9 #1
History rinse and repeat..... Lovie777 Dec 9 #4
Seems to run in cycles, evert 60 to 80 years a county or the whole world goes through it. multigraincracker Dec 9 #6
Sympathy price hikes and portion reduction BadgerKid Dec 9 #2
Constantly repeat these words, Trump price increases Walleye Dec 9 #3
Prices do decrese (deflation) but it's almost always an indicator of a depression or recession. bearsfootball516 Dec 9 #5
It seems to me thinkingagain Dec 9 #7
Many companies have 2025 inventory Johonny Dec 9 #8
A Fair Point ProfessorGAC Dec 9 #9
prices decrease, damn seldom. republianmushroom Dec 9 #10
Prices decrease in Depressions. You don't want that Bernardo de La Paz Dec 9 #11
Prices come down? moondust Dec 9 #12

multigraincracker

(34,326 posts)
1. The answer to question #1 is yes.
Mon Dec 9, 2024, 07:12 AM
Dec 9

See US economy 1929.
I’d 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)
4. History rinse and repeat.....
Mon Dec 9, 2024, 07:29 AM
Dec 9

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 it’s easier to be evil maybe because of greed and power.

multigraincracker

(34,326 posts)
6. Seems to run in cycles, evert 60 to 80 years a county or the whole world goes through it.
Mon Dec 9, 2024, 08:28 AM
Dec 9

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.

Walleye

(36,426 posts)
3. Constantly repeat these words, Trump price increases
Mon Dec 9, 2024, 07:29 AM
Dec 9

Trumpononics, it’s 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)
5. Prices do decrese (deflation) but it's almost always an indicator of a depression or recession.
Mon Dec 9, 2024, 07:50 AM
Dec 9

So while it seems good, it's not necessarily a good sign.

thinkingagain

(1,046 posts)
7. It seems to me
Mon Dec 9, 2024, 09:08 AM
Dec 9

When prices go up when they do come down it’s 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.

I’m no expert and it may be just my imagination but that is what I’ve always felt.

It’s 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 I’m in tease the prices on everything
So for the first few weeks you either end up paying more than the original price or same.
It’s only at the end when most things are gone you actually get a bargain.

Johonny

(22,243 posts)
8. Many companies have 2025 inventory
Mon Dec 9, 2024, 10:16 AM
Dec 9

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)
9. A Fair Point
Mon Dec 9, 2024, 10:37 AM
Dec 9

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.

Bernardo de La Paz

(51,252 posts)
11. Prices decrease in Depressions. You don't want that
Mon Dec 9, 2024, 12:09 PM
Dec 9

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)
12. Prices come down?
Mon Dec 9, 2024, 12:42 PM
Dec 9


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.

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