Tariffs Catch-All

  • Thread starter Thread starter BubbaOtis
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Rock said:
Assume another day of start green, end red.
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No, they just figured out he's an oracle of all knowing stable genius and they just have to listen to him. We should be back to previous highs in no less than 45 years.
 
Can someone explain something to me -- and maybe I need a new thread. Why are distributors taking markups on tariffs?

The value-added by the distributor hasn't changed. If they were adding $20 in value to a $100 product, they are still adding $20 in value for the $150 product. Why should their fee increase by 50% just because the price went up?

This is a way of asking, why do so many businesses accept multiplicative profit margins? I mean, it's a little bit like tipping waiters -- why would you tip the waiter 40% more for the same work just because the food on the plate is being charged more? In practice I tend to accept because why bother fighting (and I suppose this could be the answer above, though it seems like more is at stake there), though I tend to tip higher % at low-end restaurants and less % at higher-end ones.
 
superrific said:
Can someone explain something to me -- and maybe I need a new thread. Why are distributors taking markups on tariffs?

The value-added by the distributor hasn't changed. If they were adding $20 in value to a $100 product, they are still adding $20 in value for the $150 product. Why should their fee increase by 50% just because the price went up?

This is a way of asking, why do so many businesses accept multiplicative profit margins? I mean, it's a little bit like tipping waiters -- why would you tip the waiter 40% more for the same work just because the food on the plate is being charged more? In practice I tend to accept because why bother fighting (and I suppose this could be the answer above, though it seems like more is at stake there), though I tend to tip higher % at low-end restaurants and less % at higher-end ones.
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There's no defensible explanation for it, but it's a great example of the compounding impacts of tariffs, which, as you note, operate much like inflation. It's one of the many, many reasons every credible economist thinks what Trump is doing is bat shit crazy. Price fuckery tends to set off doom spirals.
 
UNCatTech said:
Yea because every good electrical know you can run a factory off of a Griswald power outlet.

Google Image Result for https://lookaside.fbsbx.com/lookaside/crawler/media/?media_id=391920922050485&get_thumbnail=1

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No need for transformers, switchgear, or other electrical control components for that 480v 20000 amp service.
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Right. Trump apparently thinks a factory in Shenzhen can be loaded on a Panamax, along with all its employees, and moved across the ocean to plug into the electrical grid and sewer system in Ogden, Utah.

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Any prediction on how fast people are going to throw money into revamping the coal industry, both mining and coal powered facilities? The ROI on that wouldn't terribly intrigue me if I were an investor.
 
finesse said:
Any prediction on how fast people are going to throw money into revamping the coal industry, both mining and coal powered facilities? The ROI on that wouldn't terribly intrigue me if I were an investor.
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Do you have any insight on markups?
 
superrific said:
Do you have any insight on markups?
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Oh hell no. The only thing I ever invested in was next week's groceries. I just think trying to revive coal is a classic case of beating a dead horse. The only way it's ever coming back is in a post apocalyptic world.
 
finesse said:
Oh hell no. The only thing I ever invested in was next week's groceries. I just think trying to revive coal is a classic case of beating a dead horse. The only way it's ever coming back is in a post apocalyptic world.
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I didn't know if you subcontracted out work. And coal is ridiculous, obviously. It makes sense cost-wise only if you cut out all the pollution costs, which the Administration is trying to do by not enforcing rules about toxic emissions, but presumably those rules will be enforced after the fascists get voted out of office.
 
superrific said:
In fairness, how many of those people voted for Trump? And it's also true that nobody saw 104% tariffs coming. Yes, electing a madman who in his prime was merely an idiot was a terrible, terrible idea, but still -- 104% tariffs are something else.

I feel bad for these small business owners getting crushed, even if they were Trump voters.
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Then I guess those who claimed, “Trump won’t be as bad as everyone is predicting,” we’re way, way wrong.
 
I'm perplexed by the rationale given by WH staffers on background that markets don't matter because they don't affect the core MAGA voter. When there's a recession, the vulnerable always suffer the most.
 
Huh? said:
I'm perplexed by the rationale given by WH staffers on background that markets don't matter because they don't affect the core MAGA voter. When there's a recession, the vulnerable always suffer the most.
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You are perplexed that idiots and liars say idiotic things and lie?
 
I don't feel badly for the Trump-voting small business owner. If they really believe they have been better served by the 2017 tax cut rather than our democratic institutions and rule of law, they deserve every bit of their misfortune.
 
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