Yeah, well we can only hope they don't get implemented, even on a short term basis, because once prices go up, they don't so easily come back down.
I quit buying McDs because they were too expensive - nothing to do with tariffs. They've been lowering their prices here of late (not that I'm going back). My point is that, yes, there can be some quick profits made by "greedy" businesses, but people adjust. They go someplace else or they quit buying. I can live without Avocados and I can live without McDs and I now go to a restaurant maybe once a month instead of almost once a day. I understand that one Ko'olau not buying won't make much difference but a lot of honked-off consumers have been shown to change business behavior.
Clearly, we haven't "won" the tariff war, but we've won the first skirmish. I guess we'll see how it all turns out. Stay tuned.
Man, the McD deals have been getting worse here:
www.early-retirement.org
I haven't been keeping close track on McD but have seen several ads for the lower prices. It may only be local (in the Islands) as we have much higher prices than the mainland and there is more room to cut. I'm still not buying. I'm pretty much done with them - and most fast food.Man, the McD deals have been getting worse here:
Examples of current inflation - add yours!
My local Kroger affiliate used to charge $3.99 for the 8 oz container of Marscapone cheese. Earlier this week I noticed it had gone up to $7.99. Thankfully, Costco charges $4.89 for the 16 oz container of the same brand. Lesson learned.
But like you, I've also cut back with these higher prices.
Exactly!
Of course, that is how markets work. Consider gasoline, which is one of the most efficient markets. If you see the price of oil go up you raise your price. If you sell your current inventory at the previous lower price you will not have enough money to pay the tanker truck that shows up with the next load at the higher price. You raise the price now so you do not have to borrow money to pay for your next shipment. Most things are not so transparent, "sticky" pricing, etc. but the basic concept is fundamental if you wish to stay in business.
Of course it is. If your competitors cost goes from $4 to $5 due to a 25% tariff you have 2 choices. Take market share or raise your price. If you have excess capacity you may choose to make more, but most will raise prices to capture the rent created by the tariff. Which is more likely if you are a CEO - 1. invest millions/billions of dollars in a production line where you know that you are not low cost based on a temporary tariff that may or may not continue or 2. Press a button in the computer and raise your prices 18% to make a lot more money and still be better positioned against your competition. US executives have been trained for 40 years to take the better short term result.
This is exactly what I remind my friends when they say "xyz item can't cost this much to make". We have a supply and demand based pricing (which is what we call market). Seller's goal is to maximize his overall profit, not what is fair, just, moral, etc. Nothing personal, it is just business. By the same token, you can't blame a buyer for their actions e.g. negotiate, use coupons/sale, buy less, not buy, buy alternative item, make their own, etc.
Tariffs are better than unilateral free market policies. They are a tool, means to an end. Calling their use stupid seems like a rather broad brush.
Some companies opportunistically raised prices post Covid, because the environment gave them "cover". I do not think that is going to fly now because people are unwilling to accept higher prices "just because".
I think that is right. Exceptions might include absolute necessities like a particular life saving drug or a car part that renders your "dead" car drivable again. I actually shopped for a car battery this last time. I'd never done that before. I used to go to my usual auto store and tell them to put in a battery because the old one was dying. That's when batteries were $100 or less. Last battery was gonna be $250 and I got virtually the same one for $175 by shopping. Still ridiculous price but I saved a lot by shopping AND my car was then reliable instead of iffy. IOW paying a ridiculous price was worth it for the benefit.
I only buy the $5 deal from McD. Double cheeseburger, 4 piece nuggets, small fries and a small soda.Man, the McD deals have been getting worse here:
Examples of current inflation - add yours!
My local Kroger affiliate used to charge $3.99 for the 8 oz container of Marscapone cheese. Earlier this week I noticed it had gone up to $7.99. Thankfully, Costco charges $4.89 for the 16 oz container of the same brand. Lesson learned.
But like you, I've also cut back with these higher prices.
I used to get that when you could apply the 25% app deal to get the $5 meal for $3.75. But they raised the minimum purchase to $6 in early November, so that was the end of that for me. Examples of current inflation - add yours! Then they raised the minimum purchase to $10 for just 20% off near the beginning of the year.
That seems to be all over the news. I saw them talking to Waffle House customers on the news last night and saw that news story at least a couple times times online.
Kind of funny looking back that the high price of eggs was one of the big complaints.
And political in my opinion. I expect more from a mod on this site.
Politics has nothing to do with it; tariffs are economically harmful to everyone, which is exactly what my post said. Ergo, they are stupid. You may want that to be political, but it is not.
I agree with Gumby. Tariffs become political when they are aimed at a specific country, as opposed to being applied to specific products from specific countries. I'm not referring to the usual political party divisions and messaging within the U.S., but rather global politics.
For years when I first went to McDs I could buy two burgers, fries and a Coke for (wait for it) 50 cents.
Exactly!
