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PaperclipPerfector  1d ago (text post)   1438 thread views

Small-Scale Question Sunday for February 2, 2025

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

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How does this help lower and middle? Everyone I’ve read says the opposite

It helps producers of the tariffed good and harm's consumers if it. So did you tarrif something like imported liquor over 200/bottle, that would shift margin into US manufacturers which would benefit the company and potentially supply chain.

Liquor isnt the best example because of the long lead time to produce it (for aging).

Beer is a pretty good example that's adjacent to that. Right now, Modelo is one of the most consumed mass market lagers. If you increase the price by 25%, many people will elect to consume fundamentally similar American substitute goods (e.g. Budweiser). Supply lines and distributorships complicate this somewhat, but demand shift would certainly be expected under standard models.

Tariffs are a cost on every consumer, but the revenue of the costs can (hypothetically) go only toward reducing the lower and middle class tax burden. So the cost is compensated only for the < rich. Also, wealthier people are the biggest consumers, and the things they buy cost more, like Canada Goose.

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