General Discussion
In reply to the discussion: FAFO - Tariff Edition [View all]patphil
(7,164 posts)When the inventory he is buying now runs out, the tariff will still be there, and the cost of his company's products will rise.
If sales drop due to higher prices, the choices will be to either let workers go, or for all the workers to take a pay cut to save jobs. The alternative will be that the company goes under.
This is how a depression starts. It will take a while for the economy to react to the inflationary pressures that a broad-based tariff will generate. Some businesses will thrive, but many others will not. Of course, the workers will be the first to see the effects of a tariff based trade policy.
Add to that the removal of all those immigrants from the labor pool, and we have a recipe for economic collapse.
It seems we have a large number of Americans who are either totally ignorant of how the economy works, or simply don't care about the implications of what Trump plans to do.
Just like the wall that Mexico was going to pay for, Trump is telling folks that the selling nation pays the tariff. It won't cost us a thing, and there will be a tremendous benefit to us all.
There's an old saying, "we get too soon old, and too late smart".
Unfortunately, the second half of this saying may be, at best, a deathbed realization.