Quote:
Originally Posted by dmatre
Time will tell us how many working class Americans show up to pick fruits/vegetables, make up hotel rooms, do landscaping, work construction, etc.
My gut feeling is that those not working now are doing so electively, and won’t return to the workforce in those jobs either.
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Quote:
Originally Posted by ASAP
I think this is just a lack of understanding of economics on your part 
I'll give you a few real world examples -
1) I worked in an industry that was affected by tariffs last time in 2019. All we did, was pass on the consumer the full cost of the tariff... the corresponding domestic industry raised their prices as well... just because they could... the net result was higher price for the consumer all around. This is also a violation of the USMCA by the way.
2) Removal of illegal labor? So um... who is going to do those jobs and at what wage? u? Are you prepared to pay a higher wage for your fellow US workers? Or are we gonna throw a subsidy and end up paying thru this in taxes?
3) Tax cuts - this one is to be seen... but the extension of the tax cuts will bring about another 4T to the national deficit... so um... how is that going to be made up? With DOGE adjustements lol? Well... in that case, we need to prepare for mass unemployment as well. |
I have to say - I'm with you guys here on my gut opinion, and I disagree with
Sedan_Clan on what tariffs will accomplish. That said, I'm going for a colonoscopy in two weeks, so maybe don't trust my gut because I don't right now, hence the test.
I don't really see Canadians / Americans returning to those entry level jobs even with the removal of illegals. At least not until they are paid substantially higher wages which of course will just get passed on to the end consumer who will of course then go on strike in their respective industry moaning about how they can't survive on their current wage anymore. A vicious circle that will never end. And the reason why it won't end is because the general population seems to believe they are entitled to all these toys and discretionary spending on vacations and etc and refuse to throttle it back. And so of course, yeah - they then struggle to save anything and then piss and moan about their salary and go on strike, just driving the cost of everything else up, ultimately in short time negating any increased value they won through negotiations. It will never end unless there is a behavior shift.
Tariffs...sigh, I just don't get it. I don't think Trump understands them either. But slap them on, fine, I am pretty sure I know what will happen.
Every domestic manufacturer will increase their price to right around the tariff cost just because they can - its human nature to want to extract the most. Goods overall will cost more. These costs will be borne by the average American / Canadian consumer because they will be passed along almost 100% by the manufacturer. Retaliatory tariffs will be placed to screw with the other side, causing again, exactly the same thing as above.
Then, after a period of pain for the general consumer, all sides will realize this really isn't the best course of action and the political leaders will remove the tariffs after a good show of bluster and how they are tough and defended *their* country's interests. Blah blah blah. All they effected was a general pain to their electorate.