Producers will charge what the market will bear. Just like they do right now.
This is why the corporate interests are crying, because corporations are going to bear the brunt of this. Incidentally, the stock market is also saying this.
If only we could all work in high-end knowledge jobs. I do, but it’s not realistic.
Producers will charge what the market will bear. Just like they do right now.
This is why the corporate interests are crying, because corporations are going to bear the brunt of this. Incidentally, the stock market is also saying this.
If only we could all work in high-end knowledge jobs. I do, but it’s not realistic.
The question is what will the market bear? I guess that fully bringing back US textiles/furniture manufacturing will raise prices by a whole lot (these are labor intensive industries, and even the minimum wage in North and South Caroline is 15 times higher than the average wages in the Bangladesh textile industry, and I doubt that there are many new takers for a hard minimum wage job in states that already have very low employment).
The market (that is the consumer) won't bear these multiple higher prices, and firms will not produce, and the consumer is left with the lower supply they can produce at still much higher prices than if we had not tariffed.
I don't know what corporate "interests" are. Those who are crying are those whose retirement nest egg seems to be cracking and others who can't afford higher prices.
Producers will charge what the market will bear. Just like they do right now.
This is why the corporate interests are crying, because corporations are going to bear the brunt of this. Incidentally, the stock market is also saying this.
If only we could all work in high-end knowledge jobs. I do, but it’s not realistic.
The question is what will the market bear? I guess that fully bringing back US textiles/furniture manufacturing will raise prices by a whole lot (these are labor intensive industries, and even the minimum wage in North and South Caroline is 15 times higher than the average wages in the Bangladesh textile industry, and I doubt that there are many new takers for a hard minimum wage job in states that already have very low employment).
The market (that is the consumer) won't bear these multiple higher prices, and firms will not produce, and the consumer is left with the lower supply they can produce at still much higher prices than if we had not tariffed.
I don't know what corporate "interests" are. Those who are crying are those whose retirement nest egg seems to be cracking and others who can't afford higher prices.