I spent a few months at a local hardware in ‘75, between layoffs. Store had been there since forever, and the not updated pricing, such that there was even a sticker, was out of date by years.
Good reminder about lumber. I’d better get to the store for my fence project before everyone panics and we end up in a Darwinian Covid toilet paper situation this summer.
Very nice trailers. Have been in a 21 footer.
Designer friend mentioned clients who kept dithering about their kitchen remodel choices. They finally decided and their 1st, 2nd and 3rd choices are now out of stock. The "Plan B" backup choice is now double the original quoted price.
Yeah, I still recall 3 for a penny candy at the drugstore. 5 cent gum and 5 cent Hershey bars. (Heh, heh, and $2/carton Philip Morris cigarettes that I picked up for my parents when I was 8 years old).
I don't think we would see tariff caused price increases, except for products coming from China, with some exceptions. As I I understand it there is a 90 day halt on tariffs, again except on products from China, with some exempted products. Here is a Kiplinger's article describing the tariff situation and what products are exempt from a tariff on Chinese made products. What’s Happening With Trump Tariffs? New Rates and Trade Talks
It’s hard to tell, outside of perishable agricultural goods like avocados.
Right. Currently there is 10% added to everything. My bananas went from $.49 to $.53, so 2% absorbed by the wholesaler and 8% by me. In the short run this will vary based on the demand elasticity for the product. My company raised prices by 10% plus profit on all imported inputs. We will see what happens to sales. Some industries, like autos, have idle capacity in the US that they can ramp up. They will raise prices enough to capture their start up costs and make more profit, but less than 10%. Long term the part paid by me will approach 10% since it is just a tax and importers won't take the profit hit long term and I lose access to lower cost alternatives to substitute to.
China has over 1 billion of its own people to sell to; the richest 300 million of them have incomes (at purchasing power parity) as high as those in rich countries like the US and Japan. The US needs China far more than China needs the US.
China's demographics are not well understood. Why so many ghost cities? Why are the SE Asia neighboring luxury communities built for rich Chinese mostly empty?
But they are still double what I was paying a year or so ago, and I considered them expensive then compared to what they had sold for previously.
But they are trending in the right direction!
China's economic situation seems to have parallels to that of the US between the end of the Civil War and WWI, with repeated bubbles and panics. The difference being that China is (unwisely) trying to keep the lid on.
Our local TJ Maxx is a huge store and when I was in it today, they had some shelves that were entirely empty. I was surprised that it was starting already. I only grocery shop once per month and last month I decided to stock up and buy four months worth of coffee. I was really glad I did as it has gone up 40%.
