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There are many Americans that simply don't want to understand. It's really easy to come up with bullshit explanations like: "Communist China is retaliating aga
by avidiax 2y ago
There are many Americans that simply don't want to understand. It's really easy to come up with bullshit explanations like:
"Communist China is retaliating against our tariffs by raising prices instead of accepting a fair trade by lowering their excessive profit margins!"
"Leftist companies are price-gouging hardworking Americans by increasing the profits on their cheap Chinese goods! These greedy middlemen are doubling the price of goods from China and pocketing the difference!"
The reality is that both the manufacturing side in China and the retail side in the US have roughly 50% gross margin, each, on many products, but they also have many other expenses leading to a much lower realized profit.
But it will be easy to contrive an example of a $5 widget, sold by China at $10 for a 50% gross profit, which is now $24.50 with import duties, and $49 at retail for the retailer's 50% margin. So the price at retail increased from $20-ish to $49, and you can claim that the retailer increased their profit from $10 to $29 (even though it's the same by percentage). And you can claim that all these greedy middlemen should accept "reasonable" profits, i.e. $5 + 10% = $6 + 145% = $14.70 + 10% = $16.17. So the price "should" even go down if profits were "reasonable".