Just how Crazy is Donald Trump!

[theengel]

Re: Just how Crazy is Donald Trump!

Putting a tariff on imports of steel and aluminum is not likely to stop those imports, so the importing company will have to raise prices to compensate. Thus, the company purchasing this steel or aluminum will have to pay more for the steel or aluminum. So, the company purchasing the more expensive steel or aluminum will have to increase their prices on the product they manufacture, and that means higher prices when you go to buy those products. Pretty simple.
There is no actual proof that trickle down economics works for the little guy. It definitely works for the big guy.

I guess actual dialog is a little above BullShitMan. If it isn't addressed in his news stories, he can't reply.

So it's common sense that if the company owner has to pay more for the materials, he'll charge more for the product. Why isn't the opposite true?

[Copier Addict]

Re: Just how Crazy is Donald Trump!

I guess actual dialog is a little above BullShitMan. If it isn't addressed in his news stories, he can't reply.

So it's common sense that if the company owner has to pay more for the materials, he'll charge more for the product. Why isn't the opposite true?

Short answer, greed.

[theengel]

Re: Just how Crazy is Donald Trump!

And the market forces have nothing to do with it?

For example, absolutely no one will sell their products at a price to where they are just making pennies per sale? That doesn't happen?

Of course, we can forget about car sales for this discussion, because it doesn't follow the market laws--regulations keep that industry from following the norms.

[Copier Addict]

Re: Just how Crazy is Donald Trump!

And the market forces have nothing to do with it?

For example, absolutely no one will sell their products at a price to where they are just making pennies per sale? That doesn't happen?

Of course, we can forget about car sales for this discussion, because it doesn't follow the market laws--regulations keep that industry from following the norms.

If just one company has had an increase and they are trying to compete than yes, they would likely eat the increase, depending on how much it is, but this would be an across the board increase on anyone using steel and aluminum. So there would very likely be an across the board increase in retail price on anything using steel or aluminum.

[bsm2]

Re: Just how Crazy is Donald Trump!

Only Hire the Best People? Guess he was right MORON
5 high-profile departures in 2 weeks for Trump's 'no chaos' White House
President Donald Trump has tried to quell talk of chaos in his administration for days, but the last two weeks inside the West Wing have been anything but calm.


Over the last 14 days, five top Trump administration officials -- from one of Trump's most trusted communications advisers to Secretary of State Rex Tillerson -- have either been fired or resigned.
The pandemonium belies Trump's tweet earlier this month that boasted "no chaos, only great energy" inside the West Wing.

[theengel]

Re: Just how Crazy is Donald Trump!

If just one company has had an increase and they are trying to compete than yes, they would likely eat the increase, depending on how much it is, but this would be an across the board increase on anyone using steel and aluminum. So there would very likely be an across the board increase in retail price on anything using steel or aluminum.

That's not what I mean. What I'm saying is that if all the copier companies suddenly get a tax decrease, those savings will trickle down to the purchasers. The reason is because they're all trying to win business from their competitors. So if Joe's Copiers is only making $500 per machine, and suddenly they're able to make much more money per machine, without changing their prices, then it stands to reason that they WILL cut prices instead of pocketing the money. Because the sales guy at Dave's Copiers got the same tax break, and he's been trying for years to get Joe's Copiers' customers and now all of the sudden he's able to offer the same machine at minus $500. So Joe's Copiers either has to cut their prices as well, or they lose the business.

BTW - that's not exactly how trickle-down works, but it's part of the concept. I'm just curious as to how someone could understand the concept of tariffs raising prices and not understand how tax cuts can lower prices. I'm kind of amazed at that.

... then again, I'm not. It's obvious, at this point, that BullShitMan had no real understanding of this at all--he was just repeating what he'd heard on channel 5.

[bsm2]

Re: Just how Crazy is Donald Trump!

Ben Carson And His Wife Caught In A Lie About $31,000 Worth of Dining Room Furniture
How will the former doctor defend himself this time?

Carson and his aides have repeatedly claimed that the Hud secretary was not involved in the purchase, but emails contradicts that claim

[Copier Addict]

Re: Just how Crazy is Donald Trump!

That's not what I mean. What I'm saying is that if all the copier companies suddenly get a tax decrease, those savings will trickle down to the purchasers. The reason is because they're all trying to win business from their competitors. So if Joe's Copiers is only making $500 per machine, and suddenly they're able to make much more money per machine, without changing their prices, then it stands to reason that they WILL cut prices instead of pocketing the money. Because the sales guy at Dave's Copiers got the same tax break, and he's been trying for years to get Joe's Copiers' customers and now all of the sudden he's able to offer the same machine at minus $500. So Joe's Copiers either has to cut their prices as well, or they lose the business.

BTW - that's not exactly how trickle-down works, but it's part of the concept. I'm just curious as to how someone could understand the concept of tariffs raising prices and not understand how tax cuts can lower prices. I'm kind of amazed at that.

... then again, I'm not. It's obvious, at this point, that BullShitMan had no real understanding of this at all--he was just repeating what he'd heard on channel 5.

The actual cost to manufacture doesn't change just because there has been a tax decrease, so it is unlikely that the retail prices will drop, This tax decrease will be funneled off to share holders in the form of higher dividends. Just like when the banks were bailed out for their incompetence they sent a lot of the money to executives as bonuses.

[theengel]

Re: Just how Crazy is Donald Trump!

The actual cost to manufacture doesn't change just because there has been a tax decrease, so it is unlikely that the retail prices will drop, This tax decrease will be funneled off to share holders in the form of higher dividends. Just like when the banks were bailed out for their incompetence they sent a lot of the money to executives as bonuses.

Yes it does. Part of the cost of manufacturing is taxes. It's part of the cost of everything. Every company pays taxes, and the taxes affect the prices, the pay to employees, and the money the shareholders make. This isn't difficult. It's economics 101. If the taxes go up, the cost of manufacturing, or selling, or stocking, or anything else (or everything else) goes up. You've demonstrated you understand this. How can you not understand that the cost also goes down when the taxes go down. And if lower taxes gives a company a way to bring prices down, and give them an edge over competition, why wouldn't they lower their prices?

Or are you saying that an entire industry will agree to pass that money on to shareholders and not use it to increase their market share?

[ZOOTECH]

Re: Just how Crazy is Donald Trump!

Yes it does. Part of the cost of manufacturing is taxes. It's part of the cost of everything. Every company pays taxes, and the taxes affect the prices, the pay to employees, and the money the shareholders make. This isn't difficult. It's economics 101. If the taxes go up, the cost of manufacturing, or selling, or stocking, or anything else (or everything else) goes up. You've demonstrated you understand this. How can you not understand that the cost also goes down when the taxes go down. And if lower taxes gives a company a way to bring prices down, and give them an edge over competition, why wouldn't they lower their prices?

Or are you saying that an entire industry will agree to pass that money on to shareholders and not use it to increase their market share?

Since the taxes have been lowered, when can we expect lower prices?

[slimslob]

Re: Just how Crazy is Donald Trump!

Yes it does. Part of the cost of manufacturing is taxes. It's part of the cost of everything. Every company pays taxes, and the taxes affect the prices, the pay to employees, and the money the shareholders make. This isn't difficult. It's economics 101. If the taxes go up, the cost of manufacturing, or selling, or stocking, or anything else (or everything else) goes up. You've demonstrated you understand this. How can you not understand that the cost also goes down when the taxes go down. And if lower taxes gives a company a way to bring prices down, and give them an edge over competition, why wouldn't they lower their prices?

Or are you saying that an entire industry will agree to pass that money on to shareholders and not use it to increase their market share?

To be completely factual, taxes are considered an expense, not a cost. Costs affect Gross Profit and are based on goods sold. Taxes are considered to be expenses, same as salaries and wages, and usually are based on the previous year's net profit. Both affect the the current net profit which in turn affect pricing. Tariffs are paid directly by the import company if they are import duties or the export company if they are export duties and are expenses for those companies that they pass on and become a cost of goods to purchasing company. Net result is the same.

[Copier Addict]

Re: Just how Crazy is Donald Trump!

Yes it does. Part of the cost of manufacturing is taxes. It's part of the cost of everything. Every company pays taxes, and the taxes affect the prices, the pay to employees, and the money the shareholders make. This isn't difficult. It's economics 101. If the taxes go up, the cost of manufacturing, or selling, or stocking, or anything else (or everything else) goes up. You've demonstrated you understand this. How can you not understand that the cost also goes down when the taxes go down. And if lower taxes gives a company a way to bring prices down, and give them an edge over competition, why wouldn't they lower their prices?

Or are you saying that an entire industry will agree to pass that money on to shareholders and not use it to increase their market share?

The tax decrease isn't on the front end, it is on the back end. On gross income, so this will not affect the cost of manufacturing.

[slimslob]

Re: Just how Crazy is Donald Trump!

Since the taxes have been lowered, when can we expect lower prices?

As the tax rate change took effect on January 1 this year, it could take until after the end of the first quarter before those doing quarterly estimates will know what their true savings will. For most, they will not know fully until after taxes have been filed next year.

[slimslob]

Re: Just how Crazy is Donald Trump!

The tax decrease isn't on the front end, it is on the back end. On gross income, so this will not affect the cost of manufacturing.

But tariffs on materials will.

[Copier Addict]

Re: Just how Crazy is Donald Trump!

But tariffs on materials will.

Exactly. So the tax decrease will not lower prices, but the tariffs will increase prices.