Tractors and (upcoming) tariffs?

[hayden]

Yep, and it could be a federal tax incentive as well.

Yes, just keep in mind that it's just another way for all of us to pay more. Remember, that's OUR MONEY paying for those incentives.

 

[jyoutz]

Yes, just keep in mind that it's just another way for all of us to pay more. Remember, that's OUR MONEY paying for those incentives.

True but is would be cheaper than a 25% price increase on products.

 

[Snobdds]

I think the tariffs the last time around were a significant factor in the huge inflation we saw over the past several years. If you increase cost of good by 20% on the vast majority of products sold in the US, that will eventually get marked up with manufacturer's margin plus distribution and dealer margin, resulting in a 30-50% increase once it gets to retail. Even more for high margin products. As the OP said, it's economics. Now it will happen again. And bringing jobs back is never going to happen because that would increase prices even more. They all got moved off shore in the first place to satisfy consumer demand for low prices, and investor demand for ever improving corporate earnings. We all got what we wanted, except for those who lost jobs and didn't take up other, likely more lucrative employment. But hey, this is what the country said we wanted, both long term re low prices and corporate earnings, and now with respect to tariffs. Be careful what you ask for, 'cause we are going to get it....

Tariffs do not cause inflation.

Only government spending cause inflation.

Econ 101

 

[Snobdds]

I'll vote for tariffs if the personal income tax disappears.

As one accumulates wealth, their earnings typically shift radically from income to securities and assets. Said differently, they rely less on income and more on equity appreciation. As such, if the wealthy wanted to benefit themselves the most in tax policy, they would advocate for a lower capital gains tax (or none at all) and modified depreciation or rollover rules, not zero income tax. So whenever you see a proposal for zero income tax, please try to consider that this benefits lower, lower-middle, middle and upper middle incomes THE MOST. And it forces the government to abide by lower inflows and to be more modest in how they spend your money.

 

[2manyrocks]

I'm a bit shocked at your statement that it forces the government to abide by lower inflows and to be more modest in how they spend money because you seem unusually well versed in economics and practicality. Maybe in theory it would force the government to be more modest, but in practice, the government currently seems to have no restraint about growing the deficit by leaps and bounds? I'm not picking on you....it just seems like the government has lost any restraint in spending money. They just prefer to pay for it via inflation instead of raising taxes that would get them thrown out of office faster.

 

[arrow]

Tariffs do not cause inflation.

Only government spending cause inflation.

Econ 101

I don’t think it just that although heedless spending by the government with additional money production, most certainly are a factor.
Demand, cost of production and expectations of pricing have much to do with inflation as well.
1.Demand was seen right after COVID.
2. Industrialization costs went up as supply side goods went up and wage demands increased.
3.We saw an example of expectation, increase fuel prices when the Green New Deal was embraced sending a tsunami into the petroleum industry. Petroleum goes up, just everything else associated with its production and make up goes up.
It is my belief this perfect storm is what fanned the present inflationary flames.

 

[Snobdds]

I don’t think it just that although heedless spending by the government with additional money production, most certainly are a factor.
Demand, cost of production and expectations of pricing have much to do with inflation as well.
1.Demand was seen right after COVID.
2. Industrialization costs went up as supply side goods went up and wage demands increased.
3.We saw an example of expectation, increase fuel prices when the Green New Deal was embraced sending a tsunami into the petroleum industry. Petroleum goes up, just everything else associated with its production and make up goes up.
It is my belief this perfect storm is what fanned the present inflationary flames.

Nope. Only .gov creates inflation. Increasing the money supply, via debt spending.

Money generated in the private sector has a huge equalizing factor called, "cost of goods sold".

Tariffs are seen as "cost of goods sold", thus they don't contribute to inflation.

 

[Snobdds]

I'm a bit shocked at your statement that it forces the government to abide by lower inflows and to be more modest in how they spend money because you seem unusually well versed in economics and practicality. Maybe in theory it would force the government to be more modest, but in practice, the government currently seems to have no restraint about growing the deficit by leaps and bounds? I'm not picking on you....it just seems like the government has lost any restraint in spending money. They just prefer to pay for it via inflation instead of raising taxes that would get them thrown out of office faster.

I think there is an appetite in this country right now to rid wasteful government spending.

We should not squander this opportunity via....RESISTANCE.

 

[2manyrocks]

I think the government is on a collision course with economic reality if they don't reign in their spending.

 

[arrow]

Nope. Only .gov creates inflation. Increasing the money supply, via debt spending.

Money generated in the private sector has a huge equalizing factor called, "cost of goods sold".

Tariffs are seen as "cost of goods sold", thus they don't contribute to inflation.

So what happens when demand outstrips supply?
Or when production costs go up or when expectations of profit quotas are threatened?
All of these factors increase goods cost and does not necessarily have anything to do with the government.
Human nature: absolutely.
From what you’re stating, you seem to think that constituent spending is supposed to offset money printing and when this becomes unbalanced, inflation happens.
How does this factor in the almost zero cost of living increases from 1954 to 1972?
The prosperity ensuing after 1946 was because goods and services kept up with demand unlike w COVID while the government was recovering from the expense of war.
What was the differential there?

 

[hayden]

True but is would be cheaper than a 25% price increase on products.

But does it accomplish the goal? Wait, remind me what the goal is anyway?

 

[big bubba]

glad to see a civil discussion w/o politics involved, continue the discussion, & we'll see how the subject plays out in a few years. buckle up for the unexpected tho, regards

 

[hayden]

Tariffs do not cause inflation.

Only government spending cause inflation.

Econ 101

Huh? Inflation is increases in prices, nothing more, nothing less. Yes, too much gov spending can push prices up, but it's not the only thing. Not by any means.

 

[hayden]

Nope. Only .gov creates inflation. Increasing the money supply, via debt spending.

Money generated in the private sector has a huge equalizing factor called, "cost of goods sold".

Tariffs are seen as "cost of goods sold", thus they don't contribute to inflation.

OK, that's a new definition of inflation.

 

[Snobdds]

Huh? Inflation is increases in prices, nothing more, nothing less. Yes, too much gov spending can push prices up, but it's not the only thing. Not by any means.

Raising prices are a product of inflation, but inflation is not because of rising prices.

 

[Snobdds]

OK, that's a new definition of inflation.

You're going to learn today.

 

[arrow]

Raising prices are a product of inflation, but inflation is not because of rising prices.

No, it isn’t. Rising prices are subject to supply and demand along with the cost increases and expectations.
We are in an inflationary state as a result of everything else mentioned.

 

[Snobdds]

No, it isn’t. Rising prices are subject to supply and demand along with the cost increases and expectations.
We are in an inflationary state as a result of everything else mentioned.

Supply and demand have absolutely no bearing on inflation.

If there is huge demand and no supply, how is there inflation?
If there is huge supply, and no demand, how is there inflation?

Conversely...

If there is huge supply and no demand, how is there inflation?
If there is huge demand and no supply, how is there inflation?

Prices and inflation are mutually exclusive...

 

[arrow]

Also what has been mentioned is the time factor.
Would you call a car that was $4500 in 1972 but is now $36,000, inflationary pricing?
If that had happened in say a two or three year sequence, then it would certainly be inflationary.

 

[arrow]

Supply and demand have absolutely no bearing on inflation.

If there is huge demand and no supply, how is there inflation?
If there is huge supply, and no demand, how is there inflation?

Conversely...

If there is huge supply and no demand, how is there inflation?
If there is huge demand and no supply, how is there inflation?

Prices and inflation are mutually exclusive...

Common… if you have a demand side outstripping supply, what happens to pricing?
Do prices stay the same? Do they lessen or does human nature take hold and prices invariably go up?
This has happened to everything from housing to eggs.
It’s as if what the government does, you are holding as a separate entity of a type of inflationary cause.
If you have lung cancer and l have throat cancer, they are both termed “ cancer” of which the causative factors may be different but they are a cancer nonetheless.