Anonymous ID: ff5b7e May 5, 2019, 10:29 p.m. No.6426506   🗄️.is 🔗kun   >>6509 >>6516 >>6517

Tariffs with China and how buying local effects your community. .

Product price versus the compounding effect of buying locally manufactured products.

The race against Tariff driven price increases. How long will the US consumer tolerate an increase on products from China? Hopefully long enough to begin manufacturing products here in the USA.

 

We are in the beginning of a great economic race and the winner of this race will receive a healthy middle class. Trump plans to achieve two objectives through levying tariffs.

Drive manufacturing back to the USA.

Achieve true free trade with all tariffs at ZERO DOLLARS.

The great economic plan to model the USA into the great owner nation is failing everyone accept those who make their wages through investing. The concept of investing has remained elusive to the vast majority of Americans. It is never taught and no one seems to care. How could such a strategic part of our, pre Trump economic plan leave out the vast majority of citizens? The multiple suspected reasons do not matter as Trump is truly in a race to save our nation as the middle class is where national stability manifests.

 

Why is drug abuse completely out of control and largely affecting middle class America? Look no further than self worth. As our jobs have been outsourced to robots and cheap labor our self worth has taken a beating. Gone are the days of finishing a hard days work then gazing upon a completed product. Gone are the days of plowing fields and harvesting crops. What is a third generation farmer to do when their cash crop is now cheaper to import? Much of our social degradation is attributed to the lack of meaningful employment however our commander and chief has a plan. That plan is to force production back to the USA through tariffs.

 

Ah, but the consumer assumes the costs you say? Yes they do, however the principal of compounding interest is at work. Working hard for the manufacturer. You see, the economy at the location of the manufacturer experiences the demand for more. Manufacturing increases and adds more jobs. With more jobs comes more money to buy more products and there it is. A compounding economy. A cycle feeding upon itself.

 

When we purchase products manufactured outside of our local economy only the consumer and the retailer benefit. We loose all the jobs associated with producing a product and we loose a bit of our dignity. There is no question that manufacturing locally, in spite of higher production costs, is vastly more beneficial for the entire community. Yes prices go up but so do wages and job opportunities. This is a compounding economy as opposed to a consumer economy where fewer participants exists.

 

Increasing the amount of dollars present in a local economy results in more dollars being traded for goods and services inside that economy. An increase in available dollars relates to an increase in spending.

 

When you purchase a nail, the money is paid to the store. The store sends part of the money to the manufacturer, spends part of the money on operating overheads, and some of the money is saved as profit.

 

If the manufacturer is not in the nail stores local economy, the money spent on buying the nail from the manufacturer is gone from that stores economy forever. If the store is local; money that the manufacturer pays the worker is available in that local market to purchase more nails or any other product.

 

Keeping your money local is very healthy for your local economy. It ends up paying wages to your local workforce. The US market operates on the same principles. The more money kept inside the US market the more money available to spend on paying workers.

 

Continued ….more to come

Anonymous ID: ff5b7e May 5, 2019, 10:29 p.m. No.6426509   🗄️.is 🔗kun

>>6426506

This will result in the price of goods to increase however this increase will be offset by businesses expanding, hiring employees to keep up with demand, and wage increases to keep up with inflation.

 

When your dollar goes out of your community your community misses out on the remaining exchanges that dollar will experience. This opportunity cost is even more profound when the manufacturer uses labor that is much cheaper than the purchasing economies labor. In addition, if the manufacturer resides within a closed market, meaning imports are not available for purchase, the money is trapped. Possibly never to be spent in your local economy again.

 

The only way to overcome this trapped money situation is to invest in the manufacturers or drive the manufacturing costs up through tariffs. The concept of investing is massively under emphasized throughout our nation. If fundamentally sound investment education had occurred when the US economy began to outsource all its labor we would not be in this situation.

 

if we exported as much money worth of goods as we imported then it wouldn’t matter from a national gross wealth perspective however, what we would see is those who actively participate in equity markets benefiting and the less financially educated, which is the middle class, left behind.