re: Campbell's, Dollar General announce "pricing action" in response to tariffs

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When that garbage is more expensive they buy something that helps their own country instead of communist slave labor.

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But if everyone is buying american, then how are we gonna eliminate income taxes? That’s the plan this week, remember?

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What is your purchasing power compared to the average Chinese person?

Who is winning?

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My purchasing power has been propped up by foreigners subsidizing the US dollar to maintain domestic jobs. That process has simultaneously destroyed US jobs, decreased US incomes and tax revenues, increased US govt dependency and US govt budget deficits. And it has created a massive overhang of foreign held dollars and dollar based assets. That's why the US is the world's largest debtor nation by a wide margin.

It won't continue indefinitely because the dollar will crash. I know you'd love to believe that there's no restraint on US borrowing and spending, either at home or abroad, but it's a fantasy you've been sold. Our foreign dependency and exploding twin deficits are evidence that ours is a dysfunctional economy.

Funny how none of the new TD economists noticed increased prices until January.

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Much easier and cheaper to just raise the price and pass as much as you can to the consumer. Would be dumb to invest the time effort and $$$$$$$$ building their own plant

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This mindset is exactly why we’re in the mess we’re in economically . We need to stop passing this to a future generation because “it’s easier and cheaper” and just fix it. Sorry but it’s going to be hard.

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This mindset is exactly why we’re in the mess we’re in economically . We need to stop passing this to a future generation because “it’s easier and cheaper”

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Yea man capitalism fricking sucks I’m with you

All these tariffs will force a price "pass-through period" on imports. This refers to the time it takes for a cost change (e.g., a tariff) to be reflected in consumer prices. The degree and speed of pass-through depend on market structure, competition, and consumer price sensitivity.

Once the pass-though period is over sticky prices will ensue and will be based on consumer demand and the supply of money again.

This is a simplified way it will work on a month to month basis:

December: Price of good starting point: $1. Implement tariff:

January price: $1.05, annualized: 60% inflation. Pass-through period.
February price: $1.05, annualized: 55% inflation.
March price: $1.05, annualized: 50% inflation.
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.
.
December: $1.05, annualized: 5% inflation.

Restart:

January price: $1.05, annualized: 0% inflation.


Anti-tariff folks will propagandize annualized inflation during the price pass-through period.

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Yea man capitalism fricking sucks

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Capitalism is about competition and innovation through private ownership. Buying goods instead from a communist government that has a competitive edge by forced slavery is actually a good way to kill it.

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Capitalism is about competition and innovation through private ownership

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Tariffs are anti capitalist.

Trump is a Mercantilist. Not a capitalist.

Mercantilism pretty much died out for good reason.

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By manufacturing things that are lower value which benefit you.

That frees up US labor and factories to produce higher value products which make you wealthier.

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Except that hasn't happened. If the US was producing higher value products to offset the "lower value" products, then we'd be running something closer to balanced trade, instead of growing trade deficits. Our federal govt debt wouldn't be the highest ever as a percentage of GDP. Instead, US factories disappeared, entire industries disappeared, we've become dependent on foreign vendors for critical materials and products, and we're dependent on them holding that rapidly growing flow of excess dollars that we export to the rest of the world.

No matter how you rationalize this in your head, the bottom line tells the story. When you see our trade and budget deficits dropping, you'll know we're declining toward a more sustainable level of consumption. If we wait much longer, that decline will be chaotic.

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sort of like you Moderates did when we first started seeing moderate inflation after COVID? eta: what inflation? it’s only transitory…besides it’s $3.99 at my local Walmart, durp

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Yeah, all of that has absolutely nothing to do with me or positions I believe in or have mentioned here.