Re:Best Buy and Target CEOs say prices are about to go up be...
by throw0101a on Wednesday March 05, 2025 @07:16AM
(#43265572)
> That, in turn, makes U.S. products look more attractive.
Unless they raise prices to get better margins since their competition has higher prices now. This is exactly what happened with Trump 1.0 tariffs: foreign product prices went up and so did domestic ones.
> A U.S. business also hires U.S. employees, who pay taxes as well and spend into the economy.
It takes time to on-shore, and until that happens the public is paying higher prices, potentially for a few years. So you take the total higher prices, and divide by the number of jobs created, and you can get the price per job. For washing machines it was $800K/job:
Unless they raise prices to get better margins since their competition has higher prices now. This is exactly what happened with Trump 1.0 tariffs: foreign product prices went up and so did domestic ones.
> A U.S. business also hires U.S. employees, who pay taxes as well and spend into the economy.
It takes time to on-shore, and until that happens the public is paying higher prices, potentially for a few years. So you take the total higher prices, and divide by the number of jobs created, and you can get the price per job. For washing machines it was $800K/job:
* https://www.nber.org/papers/w25767
There is an argument to be made that production capacity is strategic asset of course:
* https://www.noahpinion.blog/p/manufacturing-is-a-war-now