The Frankish Reich Posted August 7 Author Posted August 7 On 8/5/2025 at 11:17 AM, Big Blitz said: OK Mr. Zero Sum Thinking.
Wolfgang Posted August 7 Posted August 7 59 minutes ago, The Frankish Reich said: OK Mr. Zero Sum Thinking.
TH3 Posted August 7 Posted August 7 On 8/4/2025 at 4:45 PM, Big Blitz said: So…exploding wages and tariffs are awesome….? inflation ? 1
Orlando Buffalo Posted August 8 Posted August 8 I did not realize how many people did not understand how businesses work. They price items to make the maximum profit so if they determine they can sell the product in the US for $6 they will sell it for $6 even if it only cost $1 to make and ship. If selling it for $8 caused a loss in sales they will eat the tariff and still sell for $6 because they care more about overall profits then just the profit margin. If Disney was suddenly taxed at an additional $50 per ticket they would lower their price to offset some of it. That is what Trump bet on and so far he is coming out correct, though I wonder how long it will last. 1
JFKjr Posted August 8 Posted August 8 7 minutes ago, Orlando Buffalo said: I did not realize how many people did not understand how businesses work. They price items to make the maximum profit so if they determine they can sell the product in the US for $6 they will sell it for $6 even if it only cost $1 to make and ship. If selling it for $8 caused a loss in sales they will eat the tariff and still sell for $6 because they care more about overall profits then just the profit margin. If Disney was suddenly taxed at an additional $50 per ticket they would lower their price to offset some of it. That is what Trump bet on and so far he is coming out correct, though I wonder how long it will last. It's no use explaining economics to Libnuts. They just read headlines and panic. 1
The Frankish Reich Posted August 8 Author Posted August 8 9 minutes ago, Orlando Buffalo said: though I wonder how long it will last. That's the kicker. Home Depot has the resources to eat the increased costs. For now.
SectionC3 Posted August 8 Posted August 8 44 minutes ago, Orlando Buffalo said: I did not realize how many people did not understand how businesses work. They price items to make the maximum profit so if they determine they can sell the product in the US for $6 they will sell it for $6 even if it only cost $1 to make and ship. If selling it for $8 caused a loss in sales they will eat the tariff and still sell for $6 because they care more about overall profits then just the profit margin. If Disney was suddenly taxed at an additional $50 per ticket they would lower their price to offset some of it. That is what Trump bet on and so far he is coming out correct, though I wonder how long it will last. I actually agree with what you’re saying, for once. Here’s what I think is missing: small business. Home Depot can eat the costs, at least for awhile, until shareholders get antsy about P/E. But what about small business? Probably not so much. This consumer tax stupidity is going to hurt small business the most, which places like Home Depot and Amazon probably don’t mind because if they can hold out until the small businesses go under, they’ll gobble up market share and eventually raise prices. 1
Trump_is_Mentally_fit Posted August 8 Posted August 8 1 hour ago, Orlando Buffalo said: I did not realize how many people did not understand how businesses work. They price items to make the maximum profit so if they determine they can sell the product in the US for $6 they will sell it for $6 even if it only cost $1 to make and ship. If selling it for $8 caused a loss in sales they will eat the tariff and still sell for $6 because they care more about overall profits then just the profit margin. If Disney was suddenly taxed at an additional $50 per ticket they would lower their price to offset some of it. That is what Trump bet on and so far he is coming out correct, though I wonder how long it will last. So extra taxes on almost everything are just no big deal
Wolfgang Posted August 8 Posted August 8 1 hour ago, SectionC3 said: I actually agree with what you’re saying, for once. Here’s what I think is missing: small business. Home Depot can eat the costs, at least for awhile, until shareholders get antsy about P/E. But what about small business? Probably not so much. This consumer tax stupidity is going to hurt small business the most, which places like Home Depot and Amazon probably don’t mind because if they can hold out until the small businesses go under, they’ll gobble up market share and eventually raise prices.
Doc Brown Posted August 8 Posted August 8 2 hours ago, Orlando Buffalo said: I did not realize how many people did not understand how businesses work. They price items to make the maximum profit so if they determine they can sell the product in the US for $6 they will sell it for $6 even if it only cost $1 to make and ship. If selling it for $8 caused a loss in sales they will eat the tariff and still sell for $6 because they care more about overall profits then just the profit margin. If Disney was suddenly taxed at an additional $50 per ticket they would lower their price to offset some of it. That is what Trump bet on and so far he is coming out correct, though I wonder how long it will last. Tell that to my shed contractor please. Right now small businesses are feeling the brunt. Large companies will do everything they can to offset the costs in tariffs (take less profit, salary freezes, lay off employees). None of which is good for the economy. There's a reason every time Trump threatens new tariffs the stock market goes up and when he backs off it goes up. Eventually businesses will have to raise their prices (if they didn't already) to offset the cost of the tariffs to maximize profit. 2 2
Wolfgang Posted August 8 Posted August 8 2 minutes ago, Doc Brown said: Tell that to my shed contractor please. Right now small businesses are feeling the brunt. Large companies will do everything they can to offset the costs in tariffs (take less profit, salary freezes, lay off employees). None of which is good for the economy. There's a reason every time Trump threatens new tariffs the stock market goes up and when he backs off it goes up. Eventually businesses will have to raise their prices (if they didn't already) to offset the cost of the tariffs to maximize profit.
Doc Brown Posted August 8 Posted August 8 (edited) 1 hour ago, Wolfgang said: No crap Sherlock. Every major country had major inflation problems because we shut down the world economy. He added fuel to the fire with the bloated American Rescue Plan. Inflation was at 2.7% when he left office though. You're comparing apples to oranges. Edited August 8 by Doc Brown
Orlando Buffalo Posted August 8 Posted August 8 4 hours ago, SectionC3 said: I actually agree with what you’re saying, for once. Here’s what I think is missing: small business. Home Depot can eat the costs, at least for awhile, until shareholders get antsy about P/E. But what about small business? Probably not so much. This consumer tax stupidity is going to hurt small business the most, which places like Home Depot and Amazon probably don’t mind because if they can hold out until the small businesses go under, they’ll gobble up market share and eventually raise prices. 1 hour ago, Doc Brown said: Tell that to my shed contractor please. Right now small businesses are feeling the brunt. Large companies will do everything they can to offset the costs in tariffs (take less profit, salary freezes, lay off employees). None of which is good for the economy. There's a reason every time Trump threatens new tariffs the stock market goes up and when he backs off it goes up. Eventually businesses will have to raise their prices (if they didn't already) to offset the cost of the tariffs to maximize profit. Much of the cost cutting is coming from other countries, which is why inflation has not kicked in at all. Instead of charging $1.50 per unit they are charging $1.25 per unit so they can till sell in America. I have worked in small business finance in my lifetime so I do understand how these cost impact the bottom line but the gamble from Trump that is so far works by is the suppliers from overseas will cut prices to remain in our market
Trump_is_Mentally_fit Posted August 8 Posted August 8 1 minute ago, Orlando Buffalo said: Much of the cost cutting is coming from other countries, which is why inflation has not kicked in at all. Instead of charging $1.50 per unit they are charging $1.25 per unit so they can till sell in America. I have worked in small business finance in my lifetime so I do understand how these cost impact the bottom line but the gamble from Trump that is so far works by is the suppliers from overseas will cut prices to remain in our market You are full of sh it
JDHillFan Posted August 8 Posted August 8 8 minutes ago, Trump_is_Mentally_fit said: You are full of sh it On 6/12/2024 at 9:52 AM, Trump_is_Mentally_fit said: JFC, the stock market ❤️ https://www.reuters.com/business/nasdaq-posts-record-closing-high-with-tech-gains-rate-cut-optimism-2025-08-08/
Trump_is_Mentally_fit Posted August 8 Posted August 8 (edited) 30 minutes ago, JDHillFan said: https://www.reuters.com/business/nasdaq-posts-record-closing-high-with-tech-gains-rate-cut-optimism-2025-08-08/ That means prices are not rising? 🤷♂️ Edited August 8 by Trump_is_Mentally_fit
Orlando Buffalo Posted August 8 Posted August 8 50 minutes ago, Trump_is_Mentally_fit said: You are full of sh it So what is you theory then of why inflation is less than 3% despite the tariffs? i knew this was the gamble that Trump was taking with these deals, I just didn't think they would work this well.
Doc Brown Posted August 8 Posted August 8 1 hour ago, Orlando Buffalo said: Much of the cost cutting is coming from other countries, which is why inflation has not kicked in at all. Instead of charging $1.50 per unit they are charging $1.25 per unit so they can till sell in America. I have worked in small business finance in my lifetime so I do understand how these cost impact the bottom line but the gamble from Trump that is so far works by is the suppliers from overseas will cut prices to remain in our market So, best case scenario is it only hurts one countries economy. Makes sense.
SectionC3 Posted August 8 Posted August 8 2 hours ago, Orlando Buffalo said: Much of the cost cutting is coming from other countries, which is why inflation has not kicked in at all. Instead of charging $1.50 per unit they are charging $1.25 per unit so they can till sell in America. I have worked in small business finance in my lifetime so I do understand how these cost impact the bottom line but the gamble from Trump that is so far works by is the suppliers from overseas will cut prices to remain in our market Yeah no. It's not really working. Manufacturing is down. Prices are up, though not as dramatically as some expected. And those tariff monies are paid by Americans. 1 hour ago, Orlando Buffalo said: So what is you theory then of why inflation is less than 3% despite the tariffs? i knew this was the gamble that Trump was taking with these deals, I just didn't think they would work this well. Because consumers are spooked and are not consuming as much. And, inventories were padded during the period in which Trump was flip-flopping on tariffs.
Recommended Posts