[+]anon352020 points0 points0 points
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[–]anon352020 points
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Discussion around foreseen and unforeseen consequences:
Half the items on Walmart's shelves are freshly shipped from China, cheap as hell, good enough for the task at hand. Walmart is going to demand (because their customers demand) those items be re-stocked even after the 25% tariffs take effect.
Step 1: The Chinese manufacturers see a 25% rise in expenses on shipment. That eats into their already razor thin profit margin, so they increase the price 25% as the free market finds the new equilibrium point.
Step 2: Walmart will see the price rise and in representing their customer, try to haggle them down, but laws of economics are absolute, so Walmart has to accept the price hike or not restock the item. Most likely Walmart will use its huge clout to absorb some of the losses to keep prices lower and keep customers happy by smoothing over the shock and slowly rise the price over the year so people aren't all: "wtf this thing costs 25% more today than yesterday".
Step 3: Customers over the next year are going to see the higher prices in certain categories of item and in making their selection choose a cheaper item perhaps not affected by the 25% tax.
These are just the foreseen consequences. It's the unforeseen consequences that will be a problem. There 4 times as many chinamen as there are American. You don't take a household of 4 and cut out three working members and expect the house to continue on as it has before.
I had a Chinese boss once who was a total sweat shop slave driver and all around awful person, so I support this 25% tax, Trump will deal with the unforeseen consequences. I am the spirit behind the old adage: "what goes around comes around".
[–] anon35202 ago (edited ago)
Discussion around foreseen and unforeseen consequences:
Half the items on Walmart's shelves are freshly shipped from China, cheap as hell, good enough for the task at hand. Walmart is going to demand (because their customers demand) those items be re-stocked even after the 25% tariffs take effect.
Step 1: The Chinese manufacturers see a 25% rise in expenses on shipment. That eats into their already razor thin profit margin, so they increase the price 25% as the free market finds the new equilibrium point.
Step 2: Walmart will see the price rise and in representing their customer, try to haggle them down, but laws of economics are absolute, so Walmart has to accept the price hike or not restock the item. Most likely Walmart will use its huge clout to absorb some of the losses to keep prices lower and keep customers happy by smoothing over the shock and slowly rise the price over the year so people aren't all: "wtf this thing costs 25% more today than yesterday".
Step 3: Customers over the next year are going to see the higher prices in certain categories of item and in making their selection choose a cheaper item perhaps not affected by the 25% tax.
These are just the foreseen consequences. It's the unforeseen consequences that will be a problem. There 4 times as many chinamen as there are American. You don't take a household of 4 and cut out three working members and expect the house to continue on as it has before.
I had a Chinese boss once who was a total sweat shop slave driver and all around awful person, so I support this 25% tax, Trump will deal with the unforeseen consequences. I am the spirit behind the old adage: "what goes around comes around".