Hillbilly wisdom: we don’t fix, it is cheaper to buy new! New is good but is it cheaper? United States has become a throw away nation. As Americans we consistently rank high in overall per capita spending. We, however, are not the biggest alcohol consumers. That distinction goes to European countries. When asked why I drink less, my standard reply has been my brother already has the beer producers working around the clock. If I drink it will drive the price upward. But, as we feel the need to be first in all things, those of us who don’t partake may need to reassess! MAGAS just can’t do it by themselves. Although they have the reputation and they do a real good job considering they are less than 40 percent of the population.
Why are tariffs or the threat of tariffs effective? It is loss of the American market. In the short term and at current rates of production the producers are overproducing, they have more products than they can sell. We hear about adjustments. The adjustments are coming and prices will come down. When was the last time prices came down? What if instead, the producers cut back on production? This strategy has been used effectively. Energy is one of the most cited examples. Artificial shortages and supply lines issues have driven the prices upward. Retailers tell you it is the way it is. Nothing can be done. My cousin, who happens to live near the border regularly goes over the border to purchase medications made by American companies because the prices are lower there than here.
Drill baby Drill. How much of our production leaves the country? Isn’t it amazing that prices are consistently within a few cents across the energy sector? And as usual I cannot stay on task. Is there a part of our society that is immune to the effects of supply and demand. Less supply means more demand if we except that the product is necessary. Has outsourcing of manufacturing brought prices down or just the profit margins up?
Current administration’s use of tariffs to lower prices (support inflated prices) is great for the bottom lines of corporations. Does corporate America want less government regulation or do they continue to support methods that have a positive impact on their bottom line. I don’t know but the impact of corporation’s money on the elections and the lack of change would make one wonder.
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