#like at this point legally there's a bunch of stuff that they'll be required to replace once I move out regardless of its condition

[rubenesque-as-fuck]

Ughhhhh just found an apartment inspection notice on the door 😫 my weekend plans of rest are now dead because I'm gonna have to spend it cleaning the place instead

[dvandom]

Let's talk about tariffs

One way or another, we're getting more of them soon, so it's a good idea to spread the word regarding how they work. Note, this is a simplified explanation without nuance, but nuance is the sort of thing that you gotta be rich to exploit in this case.

Here's the basics: a tariff is a tax assessed at the point of import, and paid by the importer. Tariffs always make prices go up.

Say a company orders a bunch of stuff that would otherwise cost them $100 each. Adding on their other business expenses, they will sell each for $150, with some but not all of that extra $50 being profit. Let's say at most $20 of it is profit.

Now a 20% tariff is applied, and the company has to pay $120 each. If they want to keep selling them for $150, that will eliminate their profit and might even require selling the things at a loss. So they have to raise the price. Maybe they only raise it to $160 rather than $170, but they gotta make a profit or they get bought out by venture capitalists and gutted.

The original supplier could lower their price too, but again there's only so much they can drop before they're losing money on the deal too.

Why would a supplier even want to do this? Well, let's say that the domestic competition can supply the thing to retailers for $115. The foreign supplier can stay competitive by dropping their cost by a few bucks, so that after the tariff is applied they cost $114, or even $115 but sell it on the grounds of the retailer already having advertised their version. Small, targeted tariffs can coerce foreign suppliers into taking a cut to their profits. But even in this case, no one's going to be buying $150 products on the shelf anymore, it's just that both foreign and domestic versions will be $160-165. The price has gone up a little. Maybe not the full 20% of the tariff, but a noticeable amount.

That was the sort of tariff we mostly have right now, in 2024. We're also ignoring the fact that things are so interconnected that there may not BE a purely domestic version of a particular thing, just companies with completely foreign production versus those who buy all the parts abroad and assemble them domestically. In that case, everyone's getting hit by the tariffs.

However, the "I Love Tariffs" incoming President has threatened things like 100% or higher. This is the sort of tariff you apply when your goal is to protect a domestic company and to hell with the consumers. (Actually banning imports or setting quotas can also do this, but it's harder to enforce. IIRC, Japan has import restrictions on rice so that they don't completely outsource their food supply.)

A 100% tariff means that in the example above, it now costs the importer $200 to pay for each of the things in their order, so even if nothing else changes they'd have to charge $250 each to get the same amount of profit (and a smaller profit MARGIN). Does this mean they'll just go buy the $115 domestic version? Well, they'd like to, but now the domestic version is $160 or $180, because the domestic companies can just crank up their profit margins while staying cheaper than the alternative. Domestic companies are not driven by a desire to serve the public, they're legally required to make as much money as they can (this is a big problem lately, stockholders can sue if they think a company is passing up on profits). Thus, when punitive tariffs raise the price of imports to stupid levels, domestic suppliers (even those who miraculously have their entire supply chain within the country) will run up the price too.

All of this money will come from consumers and go into the pockets of the government. Do you trust the incoming administration to spend this windfall on helping the people hammered by massive spikes in inflation? I sure don't.