Tractors and (upcoming) tariffs?

[hayden]

True but is would be cheaper than a 25% price increase on products.

But does it accomplish the goal? Wait, remind me what the goal is anyway?

 

[big bubba]

glad to see a civil discussion w/o politics involved, continue the discussion, & we'll see how the subject plays out in a few years. buckle up for the unexpected tho, regards

 

[hayden]

Tariffs do not cause inflation.

Only government spending cause inflation.

Econ 101

Huh? Inflation is increases in prices, nothing more, nothing less. Yes, too much gov spending can push prices up, but it's not the only thing. Not by any means.

 

[hayden]

Nope. Only .gov creates inflation. Increasing the money supply, via debt spending.

Money generated in the private sector has a huge equalizing factor called, "cost of goods sold".

Tariffs are seen as "cost of goods sold", thus they don't contribute to inflation.

OK, that's a new definition of inflation.

 

[Snobdds]

Huh? Inflation is increases in prices, nothing more, nothing less. Yes, too much gov spending can push prices up, but it's not the only thing. Not by any means.

Raising prices are a product of inflation, but inflation is not because of rising prices.

 

[Snobdds]

OK, that's a new definition of inflation.

You're going to learn today.

 

[arrow]

Raising prices are a product of inflation, but inflation is not because of rising prices.

No, it isn’t. Rising prices are subject to supply and demand along with the cost increases and expectations.
We are in an inflationary state as a result of everything else mentioned.

 

[Snobdds]

No, it isn’t. Rising prices are subject to supply and demand along with the cost increases and expectations.
We are in an inflationary state as a result of everything else mentioned.

Supply and demand have absolutely no bearing on inflation.

If there is huge demand and no supply, how is there inflation?
If there is huge supply, and no demand, how is there inflation?

Conversely...

If there is huge supply and no demand, how is there inflation?
If there is huge demand and no supply, how is there inflation?

Prices and inflation are mutually exclusive...

 

[arrow]

Also what has been mentioned is the time factor.
Would you call a car that was $4500 in 1972 but is now $36,000, inflationary pricing?
If that had happened in say a two or three year sequence, then it would certainly be inflationary.

 

[arrow]

Supply and demand have absolutely no bearing on inflation.

If there is huge demand and no supply, how is there inflation?
If there is huge supply, and no demand, how is there inflation?

Conversely...

If there is huge supply and no demand, how is there inflation?
If there is huge demand and no supply, how is there inflation?

Prices and inflation are mutually exclusive...

Common… if you have a demand side outstripping supply, what happens to pricing?
Do prices stay the same? Do they lessen or does human nature take hold and prices invariably go up?
This has happened to everything from housing to eggs.
It’s as if what the government does, you are holding as a separate entity of a type of inflationary cause.
If you have lung cancer and l have throat cancer, they are both termed “ cancer” of which the causative factors may be different but they are a cancer nonetheless.