Seeing so many people who claim "taxes are bad because they make things more expensive" now claiming "tariffs are good because they make things cheaper" has converted me to Solipsism.
The notion that the world as I know it doesn't exist and what I'm perceiving is just some Jacob's Ladder hallucination as I approach brain death is a far more rational explanation for this than "these are real, regular, every day people who just happen to be like that".
Trade deficits are other countries giving you physical goods in exchange for paper with dollars printed on them. As long as anyone wants to hold that paper rather than redeem it for goods from your own country, you get to have a higher standard of living than you earned. Basic macroeconomic concepts should be taught in elementary school.
I think that being a Republican in public should be frowned on. It should be understood that what you do within your own four walls is up to you, but we don't need to be subjected to your perverted worldview.
It has been reported that Apple's phones would cost about $50 ~ $80 more to manufacture in the U.S (from studies back when Biden was suggesting the 'Chips' act IIRC).
I recently learned that pigeons are very good at recognising pattern, unlike the user being compared to one, apparently. So, please don't insult pigeons.
Today I read a seriously meant LinkedIn post that the overall economic crash thing is apparently some 4D chess move for refinancing US debt: the decreased revenues and ability to pay debt are supposed to increase creditor confidence and lead them to accept lower yield on government bonds, saving billions in debt maintenance................
Well Trump has always weaseled his way out of debt so it’s no surprise some of the more gullible might think he could do that for a country. More importantly though, he doesn’t care. All of this economic craziness is raising unemployment, and increasing prices. His buddies at banks and businesses do great in that environment.
Bold of someone to think a corporation will pay the tariffs straight up and not simply increase their prices to make up for their losses. Then again, Trumpers aren't so good at understanding things. So, not surprising that they're this naive.
That's happening with the Switch 2 right now...prices were prepped and ready before the tarriffs, they were going to open the pre-orders in the next couple days......those pre-orders are now being delayed, likely so that nintendo can update pricing...
Partly so all the stores that stock them can sell them at the new recommended price, but also how Nintendo can announce it and smooth it over with US consumers who won't be happy about it - the two reasons they've delayed it a bit.
I agree....but how many different retailers need to update their pricing too....digital shouldn't be too bad but what about marketing campaigns with physical billboards?....there's more that goes into this but thinking this stuff changes on a dime is silly
That's, sadly, not how it works. Everything is sold by margins. Meaning if the import is increased by 25%, the distributor will increase by 5%. Then the warehouse increases the cost by another 10%, then the store puts it on the shelf another 10%. By the time it reaches your hand, a 25% tariff can increase the cost by 50% or more on a product. It compounds from one hand to the next.
Wait, so people paid for the product and they're not going to provide it at the agreed upon price? If some event caused the cost to the company to go down they wouldn't issue a refund. This seems like a dick move if not a violation of a contract.
how tariffs work: item made in USA, $20, imported item $12. US applies ten dollar tariff, imported item now costs $22, US item raises their price to $21.95. tariffs on foreign goods give capitalist shitheads excuse to raise prices, only the consumer is harmed. consumers are never helped by tariffs. the foreign manufacturer pays nothing. The importer pays the tariff, then passes it on to the customer.
Addition: If the tariff is later removed both the importer and local manufacturer keep the price high and keep the extra profit, because "that's the price now".
nothing is more permanent that a temporary tax unless it's a temporary price increase. Remember when covid and the blocked canal made supply chain issues cause a temporary increase in price? how long has the canal been back up, prices should be back to 2019 levels any minute, right
To be fair (and this is NOT giving Trump credit, because he's not smart enough to understand this), our current system, as developed during the Clinton administration, has raw materials being shipped to China and similar places where exploited workers get paid a pittance to manufacture the goods, then get shipped back to be sold in North America. Making local manufacture the cheaper option will bring manufacturing jobs AND reduce the carbon footprint from all the shipping. (of coures, Trump>
isn't thinking about bringing back jobs, or fighting climate change; he's just trying to maintain his posture of "big strong badass leader" by sticking to the tariffs rather than admit he was wrong about things.
It looks as if we're in for four years of Trump smashing the orphan-grinding machine with a large wrench, not because he even knows or cares about the orphans but because he's an idiot who doesn't know what else to do)
We developed it here in the first place. We can do it again. And we may have to, at this rate... which is a good thing, because I'm REALLY sick of the whole "ship it all over the world and ramp up C02 levels because it's more profitable for corporations" system.
If the iPhone could be made more cheaply in America, they'd be doing that and still charging the same price for it. No corporation ever passes the savings on to the consumer. They only ever pass the savings on to their stock holders.
In theory they would to corner the market. But that’s only if the government actually dissolved monopolies and enforced anti trust laws like they’re supposed to
Motorola used to build some of its phones in the U.S. I remember reading an interview with the CEO and he was saying that the cost per unit for assembling a phone in China might be $10 while doing it in the U.S. might be closer to $50. So while you can't build a budget phone in the U.S., a high end device can be done without a problem.
But when you're selling tens of millions of phones, that extra $40 in lost profit really adds up, so most companies build them in China.
APPLE profits. Mainly due to PRICE GOUGING. Markup over costs to make an iPhone is staggering. THIS is why they're a multi-billion dollar firm. NOT because the product is under unrelenting demand.
A key example: Earlier the standard was internal storage got expanded using a Micro SD card. It worked. Sure, for makers there was an added cost for a hatch to access it, but you could boost your storage as you wished. Apple? NO. 8Gb to 16Gb? $100. 8Gb Micro SD? $20. As I said--GOUGING.
See my only justification for ever wanting to be a massively success business owner would be to create quality product or service, with employees that could have respectable wages. Like no I wouldn't wanna keep doing the physical aspect of production or service, but I wouldn't be a slouch either. The only value I find in money is what is necessary, bc I'm simple with life. Shit I make chicken rice and veggies for way more meals than I care to admit. Not bc I can't afford better or make better >
And it would read "Assembled in USA" on the power-on splash screen with 'Murican flags - while the small print on the internals all read "Made in China".
In fact, most likely scenario if they made it in America to lower costs of production (assuming it would be cheaper still, probably not given how little FoxConn pays its factory workers in China) what'd happen is they'd make it cheaper here, and raise the price of it to blame tariffs, and pass the savings and EXTRA on to their stock holders.
McDonalds collects 1.5B in tax credits, against a 1.5B in profits. So... your local govenrnment is just playing into McDonalds profits. Best of luck with that.
And of course Apple being Apple, they'd then build in a way for it to fail prematurely from normal use just before the warranty wears out and then when you go to do the warranty repair they replace the whole phone, charge you for it, claim they didn't charge you to their warranty insurance provider, get a check cut from the insurance, and then claim to the IRS they replaced it for free and write it off on their taxes. Quadruple income from one phone sale.
Tangent to this, extra income for a company isn't going to go to workers unless they get better contracts or a bonus scheme that details that. I always find it a bit funny and sad to see gamers moan that a successful game doesn't magically result in money to developers - they have to get that in writing first, no magic involved. Few companies are going to be benevolent when they don't have to.
Companies don’t pass anything to their stock holders. That would be paying dividends, which companies don’t do any more. All profits are instead spent on expanding the company or buying back stocks. In the modern system of ownership, all gains come from the driving the stock price upward. As long as it can rise infinitely the system works.
My point was that if they actually passed profits to shareholders then anyone could buy shares and gather wealth, but the system has gradually eliminated dividends to shut out the masses and favor the 0.1%. Are you in the that 0.1%? If not, then why are you giving me a hard time?
I'm giving you a hard time because you're missing the point. You're being clinically pedantic about semantics when the point is anything saved just means higher margins for the share holders to have higher gains from. Whether you call it "passing on the savings" or "paying dividends" or "increasing stock buyback options" is completely beside the point. The rhetoric plays on the false perception that price is set by cost, it's not. The whole "passing the savings on to the buyer" is something that
ciaron
As long as Americans are happy to work for the same wages as Uighurs and other enslaved peoples around the world it's possible prices could come down
BoblovesMac31415101
😂
Hexidimentional
Someone's about to get a lesson in where things are made
IhopeyougetstageIIIcoloncancer
Seeing so many people who claim "taxes are bad because they make things more expensive" now claiming "tariffs are good because they make things cheaper" has converted me to Solipsism.
The notion that the world as I know it doesn't exist and what I'm perceiving is just some Jacob's Ladder hallucination as I approach brain death is a far more rational explanation for this than "these are real, regular, every day people who just happen to be like that".
Jackthwolf
Goes to show just how bad the propoganda is for these twats, they are quite literally living in an alternative reality.
Also - peak insult.
BlindGardener
I actually do think that the Tariffs will bring down the prices of certain things. stocks mostly.
TheMoonBnuuy
If we tax the thing harder, maybe it’ll be cheaper!
If I punch my pizza delivery guy in the face, maybe my food will get here faster.
DarthWaiterSE
Thus urging him to develop time travel to avoid getting punched in the face! Genius! Capital plan!/s
HumanCats
We gave pigeons medals in the war. They're too clever for her.
Mr21782Man
Tariffs could double the production cost of an iPhone and Apple could still sell it at the same price and make a profit.
shivacat
HAHAHAHAHA!!!! That’s funny.
sinb
Trade deficits are other countries giving you physical goods in exchange for paper with dollars printed on them. As long as anyone wants to hold that paper rather than redeem it for goods from your own country, you get to have a higher standard of living than you earned. Basic macroeconomic concepts should be taught in elementary school.
Kiirdel
I think that being a Republican in public should be frowned on. It should be understood that what you do within your own four walls is up to you, but we don't need to be subjected to your perverted worldview.
shivacat
Furthermore, I think we ought to dip them all in hideous puce green paint, so that they are easily identifiable out in public.
Fentex
It has been reported that Apple's phones would cost about $50 ~ $80 more to manufacture in the U.S (from studies back when Biden was suggesting the 'Chips' act IIRC).
originalhuman
They can only say what they’ve been told to say
eastend666
I love that someone this stupid is in the $1K+ phone market.
supermario182
500 dollars for a phone? With no keyboard? Who would want that?
BackToTheOriginalUsername
I recently learned that pigeons are very good at recognising pattern, unlike the user being compared to one, apparently. So, please don't insult pigeons.
AlexSomething
Humans did the pigeons dirty, I hate that we add insult (literally) to injury.
ThisGuyPostingThings
Thank you. The pigeon slander was uncalled for, really unnecessary.
Kagenical
I had several pigeon friends at the local park. They're remarkably intelligent.
shivacat
If you run into one named Raoul, tell him Pedro says hi!
bolobass
Fuck those parasite infested flying rats.
shivacat
Umm, I thought we were talking about pigeons, not Republicans.
Cefinster
Pigeons, however, are not that great at teaching people. Which I believe was the comments point.
BackToTheOriginalUsername
https://media3.giphy.com/media/v1.Y2lkPWE1NzM3M2U1NG9sNW1jYm81Ym41cG5oemhscTZzZXc5OXdvN2x4ajd0M2JqcDMwNSZlcD12MV9naWZzX3NlYXJjaCZjdD1n/l0MYrR7EqMWLmzL9K/200w.webp
Eleshar24
Today I read a seriously meant LinkedIn post that the overall economic crash thing is apparently some 4D chess move for refinancing US debt: the decreased revenues and ability to pay debt are supposed to increase creditor confidence and lead them to accept lower yield on government bonds, saving billions in debt maintenance................
fknbastard
Well Trump has always weaseled his way out of debt so it’s no surprise some of the more gullible might think he could do that for a country. More importantly though, he doesn’t care. All of this economic craziness is raising unemployment, and increasing prices. His buddies at banks and businesses do great in that environment.
NKato
Um? No. Creditors want their fucking money. You don't fuck with their money.
Eleshar24
The point is that when creditors believe they may not get back the money they are lending, they typically expect higher yields in interest...
NKato
Yup.
SergeantTerryJeffords
Hey, I was homeschooled and I understand that those phones are made outside of the country and will therefore be more expensive
shivacat
Nicely played 👍
BoblovesMac31415101
That is funny AF.
xRevenx
Bold of someone to think a corporation will pay the tariffs straight up and not simply increase their prices to make up for their losses. Then again, Trumpers aren't so good at understanding things. So, not surprising that they're this naive.
edgeofadhesion
That's exactly what Nintendo have done with the Switch 2 preorders in the US.
xXCarpeNoctumXx
That's happening with the Switch 2 right now...prices were prepped and ready before the tarriffs, they were going to open the pre-orders in the next couple days......those pre-orders are now being delayed, likely so that nintendo can update pricing...
https://www.gamespot.com/articles/nintendo-switch-2-preorder-guide-mario-kart-world-bundle/1100-6530531/
MenloPart
How difficult is it to increase pricing?
Tariffs increase the cost x%, so you increase your price by x + your profit margin.
edgeofadhesion
Partly so all the stores that stock them can sell them at the new recommended price, but also how Nintendo can announce it and smooth it over with US consumers who won't be happy about it - the two reasons they've delayed it a bit.
xXCarpeNoctumXx
I agree....but how many different retailers need to update their pricing too....digital shouldn't be too bad but what about marketing campaigns with physical billboards?....there's more that goes into this but thinking this stuff changes on a dime is silly
Mekami
That's, sadly, not how it works. Everything is sold by margins. Meaning if the import is increased by 25%, the distributor will increase by 5%. Then the warehouse increases the cost by another 10%, then the store puts it on the shelf another 10%. By the time it reaches your hand, a 25% tariff can increase the cost by 50% or more on a product. It compounds from one hand to the next.
Amomani
Wait, so people paid for the product and they're not going to provide it at the agreed upon price? If some event caused the cost to the company to go down they wouldn't issue a refund. This seems like a dick move if not a violation of a contract.
Aspernari
No, nobody has paid for the product yet. Reading isn't this complicated. You could at least try.
Amomani
Nah
PunnyTiger
how tariffs work: item made in USA, $20, imported item $12. US applies ten dollar tariff, imported item now costs $22, US item raises their price to $21.95. tariffs on foreign goods give capitalist shitheads excuse to raise prices, only the consumer is harmed. consumers are never helped by tariffs. the foreign manufacturer pays nothing. The importer pays the tariff, then passes it on to the customer.
Nitewakee
This is… accurate.
CarlBassett
Addition: If the tariff is later removed both the importer and local manufacturer keep the price high and keep the extra profit, because "that's the price now".
PunnyTiger
nothing is more permanent that a temporary tax unless it's a temporary price increase. Remember when covid and the blocked canal made supply chain issues cause a temporary increase in price? how long has the canal been back up, prices should be back to 2019 levels any minute, right
ArkoneAxon
To be fair (and this is NOT giving Trump credit, because he's not smart enough to understand this), our current system, as developed during the Clinton administration, has raw materials being shipped to China and similar places where exploited workers get paid a pittance to manufacture the goods, then get shipped back to be sold in North America. Making local manufacture the cheaper option will bring manufacturing jobs AND reduce the carbon footprint from all the shipping. (of coures, Trump>
ArkoneAxon
isn't thinking about bringing back jobs, or fighting climate change; he's just trying to maintain his posture of "big strong badass leader" by sticking to the tariffs rather than admit he was wrong about things.
It looks as if we're in for four years of Trump smashing the orphan-grinding machine with a large wrench, not because he even knows or cares about the orphans but because he's an idiot who doesn't know what else to do)
shivacat
Not to ignore the elephant in the room, but where are we gonna come up with the manufacturing capability? We sent it all over seas, remember?
ArkoneAxon
We developed it here in the first place. We can do it again. And we may have to, at this rate... which is a good thing, because I'm REALLY sick of the whole "ship it all over the world and ramp up C02 levels because it's more profitable for corporations" system.
TheMoonBnuuy
If the iPhone could be made more cheaply in America, they'd be doing that and still charging the same price for it.
No corporation ever passes the savings on to the consumer. They only ever pass the savings on to their stock holders.
spiceass9000
In theory they would to corner the market. But that’s only if the government actually dissolved monopolies and enforced anti trust laws like they’re supposed to
GloriousPirateBeard
It's literally illegal, the SC decided it years ago, long before Trump
UncleMeaty
Motorola used to build some of its phones in the U.S. I remember reading an interview with the CEO and he was saying that the cost per unit for assembling a phone in China might be $10 while doing it in the U.S. might be closer to $50. So while you can't build a budget phone in the U.S., a high end device can be done without a problem.
But when you're selling tens of millions of phones, that extra $40 in lost profit really adds up, so most companies build them in China.
cytherians
APPLE profits. Mainly due to PRICE GOUGING. Markup over costs to make an iPhone is staggering. THIS is why they're a multi-billion dollar firm. NOT because the product is under unrelenting demand.
A key example: Earlier the standard was internal storage got expanded using a Micro SD card. It worked. Sure, for makers there was an added cost for a hatch to access it, but you could boost your storage as you wished. Apple? NO. 8Gb to 16Gb? $100. 8Gb Micro SD? $20. As I said--GOUGING.
Xenarion
Especially not Apple, who is known to overcharge.
philmoregraves
See my only justification for ever wanting to be a massively success business owner would be to create quality product or service, with employees that could have respectable wages. Like no I wouldn't wanna keep doing the physical aspect of production or service, but I wouldn't be a slouch either. The only value I find in money is what is necessary, bc I'm simple with life. Shit I make chicken rice and veggies for way more meals than I care to admit. Not bc I can't afford better or make better >
unluckyandbored
And that's why you'll never be rich.
philmoregraves
Well crazy fucking concept I don't want to be rich. I also don't wanna stick a knife through my foot, wanna tell me how I'll never do thst either?
philmoregraves
It's just simple, easy, and not much to clean
NightOwlRally
And it would read "Assembled in USA" on the power-on splash screen with 'Murican flags - while the small print on the internals all read "Made in China".
shivacat
“Made in China by Forced Labor”
NightOwlRally
"Made in China by Prisoners with Jobs"
shivacat
Sorry. My bad.
NightOwlRally
https://media1.giphy.com/media/CvZuv5m5cKl8c/200w.webp?cid=a57373e50ioy0k1y5rgsxzve40s3wzli0fg0md4a3tvodzdj&ep=v1_gifs_search&rid=200w.webp&ct=g nothin to worry about! ;D
TheMoonBnuuy
In fact, most likely scenario if they made it in America to lower costs of production (assuming it would be cheaper still, probably not given how little FoxConn pays its factory workers in China) what'd happen is they'd make it cheaper here, and raise the price of it to blame tariffs, and pass the savings and EXTRA on to their stock holders.
ArthurT
McDonalds collects 1.5B in tax credits, against a 1.5B in profits. So... your local govenrnment is just playing into McDonalds profits. Best of luck with that.
TheMoonBnuuy
And of course Apple being Apple, they'd then build in a way for it to fail prematurely from normal use just before the warranty wears out and then when you go to do the warranty repair they replace the whole phone, charge you for it, claim they didn't charge you to their warranty insurance provider, get a check cut from the insurance, and then claim to the IRS they replaced it for free and write it off on their taxes. Quadruple income from one phone sale.
skizlor
Utilizing American Prison Slave Labor, Apple might just have a chance.
Z0op
Ooh thats a good one, only way to compete with foxcon i guess
aducksayswhat
Tangent to this, extra income for a company isn't going to go to workers unless they get better contracts or a bonus scheme that details that. I always find it a bit funny and sad to see gamers moan that a successful game doesn't magically result in money to developers - they have to get that in writing first, no magic involved. Few companies are going to be benevolent when they don't have to.
clumsygoat
Companies don’t pass anything to their stock holders. That would be paying dividends, which companies don’t do any more. All profits are instead spent on expanding the company or buying back stocks. In the modern system of ownership, all gains come from the driving the stock price upward. As long as it can rise infinitely the system works.
TheMoonBnuuy
Also, I looked it up.
Apple pays dividends.
TheMoonBnuuy
"they don't pass anything, they pay dividends" isn't the "ackshually" you think it is.
clumsygoat
My point was that if they actually passed profits to shareholders then anyone could buy shares and gather wealth, but the system has gradually eliminated dividends to shut out the masses and favor the 0.1%. Are you in the that 0.1%? If not, then why are you giving me a hard time?
TheMoonBnuuy
I'm giving you a hard time because you're missing the point. You're being clinically pedantic about semantics when the point is anything saved just means higher margins for the share holders to have higher gains from. Whether you call it "passing on the savings" or "paying dividends" or "increasing stock buyback options" is completely beside the point. The rhetoric plays on the false perception that price is set by cost, it's not. The whole "passing the savings on to the buyer" is something that