Market crashing

Quote: rxwine

You care about Greenland?

I do. I’m unhappy that I’ve never been there. And I love places with really harsh climates that have hardy indigenous folks who just want to eke out an existence. We have some sort of treaty with them allowing a military presence there already. Trump should STFU and leave well enough alone. I’m sure if we wanted more bases for whatever reason I’d wouldn’t have been an issue before the jerk opened his mouth. Now not as easy.

Trump is an embarrassment.

It's bad enough that the French correctly say we Americans walk around with "dirty assholes:" now they can truthfully say we have one leading us.

Quote: SOOPOO

I do. I’m unhappy that I’ve never been there. And I love places with really harsh climates that have hardy indigenous folks who just want to eke out an existence.

WNY living will do that to you.

Quote: AZDuffman

WNY living will do that to you.

Huh?

I don't live in western NY.

What are you trying to say?

Quote: SOOPOO

I like your post. But I thought I made it clear that today’s bump really can’t be attributed to Trump. And an additional 3% added to the corporate tax rate would be a huge deal. My experience is when corporations (or stores) have a 3% raise in their costs YOU will be seeing a far higher raise in YOUR costs to buy the product.

Right now, we are spending a trillion or so more than we take in every year. Please tell me what program YOU want to cut? Or what taxes YOU want to raise? Or are you just happy owing trillions more dollars?

I know this is a very late response, but the answer to the last question is yes. I am against personal debt (and some business debt, that is more complicated,) but national debt is fine. That being said, I am also not against cuts or tax raises (for the right reason.) National debt is not inherently bad as long as it is managed (certain ranges to keep it within, which I am not going to pretend that I know off of my head, but our debt sounds high, but we have a massive GDP, and it's usually measured per scale to GDP, many much smaller countries with a seemingly small debt are in far worse shape than us simply because we make so much money, so the raw number does not matter all that much.)

However, I don't agree with your assertion that a 3% corporate tax increase will increase prices more than a 25% tariff, this is simply untrue. Tariffs tax revenue, corporate taxes tax profit, massively different things. A 25% tariff will be an overnight 25% (or more) increase on X product, because it's their straightline revenue. A 3% tax raise, maybe a slight raise, but most people would not notice.

I am not against heavy tariffs for a good reason (national security,) but heavy tariffs against our friends and trading partners is absurd, not to mention two of the countries where most of our base materials come from. This is not a good move.

I have been travelling a lot recently, and all over, I see billboards that say "tariffs are a tax on your grocery bill," paid for by the government of Canada, and this is true. Tariffs are a direct tax on consumers.

Tariffs are fine if there is a legitimate reason, but don't fool yourself into thinking they are good for prices or for the market (they will be bad for both.)

Quote: Gandler

I see billboards that say "tariffs are a tax on your grocery bill," paid for by the government of Canada, and this is true. Tariffs are a direct tax on consumers.

Tariffs are only a tax on those that purchase those goods. Just like lotteries are a tax on those that buy tickets. So simple, if you just say no to those imported goods you can avoid the tariffs.

Quote: DRich

Tariffs are only a tax on those that purchase those goods. Just like lotteries are a tax on those that buy tickets. So simple, if you just say no to those imported goods you can avoid the tariffs.

Exactly, that's the point of a tariff. India puts a tariff on motorcycles that we sell them so people in India will buy Indian motorcycles and not American motorcycles. Why is this so hard for people to understand.

Oh, I understand it.

Trump hates income taxes and wants to shitcan it and go back to how things were 100 years ago when the government was funded by tariffs and duty payments.

Tariffs are simply an incredibly high sales tax paid by the consumer.

Hey, you voted for him so suck it up and enjoy the inflation and scarcity coming your way.

Quote: DRich

Tariffs are only a tax on those that purchase those goods. Just like lotteries are a tax on those that buy tickets. So simple, if you just say no to those imported goods you can avoid the tariffs.

That's not exactly true.

You can't avoid some imported products. Something like 70% of oil comes from Canada, most wood and metal products comes from Canada or Mexico. You can't build a house without buying tariffed products. It's, not like you can just avoid it, when you are talking about a lot of basic materials, we are not talking about a single recreational product (lottery tickets,) very different.

And, it's also not only true that it is only a tax on those who purchase the goods. Increased fuel tariffs increased the price on everything.

And, thirdly some tariffed products will still be cheaper than American products, but now they won't be as cheap (so it still makes sense to buy them, but it's less of a savings.)

Tarriffs are fine if they accomplish something. Punishing Canada does not accomplish anything, pure silliness.

Quote: DRich

Tariffs are only a tax on those that purchase those goods. Just like lotteries are a tax on those that buy tickets. So simple, if you just say no to those imported goods you can avoid the tariffs.

Let's just say for the sake of interest that there's a 25% tariff applied to imported autos, but none that affect the price of US ones... Dealerships put the retail prices up by say 20% to try to claw some back... They obviously lose some market share.
Meanwhile Domestic auto dealerships see that they are significantly cheaper than the imports, so they see the opportunity for a modest, say 7.5% price increase. After all, they will be relatively cheap. They snatch up that opportunity as they would be mad to drop prices.
Now all auto consumers will face higher prices even if they loyally buy american and 'say no to those imported goods'.

If the price of autos goes up, or soy beans, or anything, then the consumers of those things start demanding higher salaries. There's your inflation vicious circle affecting all consumers.

Anyhow folks. Good luck to you as a nation waging a tariff war on China. China will slaughter your economy. They think long term and have no voters to worry about. Between having enemies of China and internal enemies of trump/musk, your future is bleak. Enjoy.