Biden Domestic Policy

[BigRedBuster]

7 minutes ago, RedDenver said:

I'm not. I'm saying the inflation is temporary on the order of a few months, which isn't anything like the multi-year issues of past decades. If inflation stays around 5% for a year, then I'll be more concerned.

And I disagree with that.  

[JJ Husker]

There are issues making inflation worse than it has to be. It is false to say it is all completely natural due to pandemic recovery. Much of it is being caused by the Trump steel tariffs. Below is a letter sent to President Biden by 33 trade associations which mimics previous requests made by 300+ US manufacturers. This may be a problem Trump caused but it is Biden's job to get this corrected.  This letter doesn't delve into the inflationary pressures the tariffs are causing but it is well documented that the tariffs are causing US manufacturers to pay at least 30% higher prices than our global competition for raw steel and aluminum inputs. 

 

(BTW- I believe it is okay for me to post this in it's entirety since the PMA/NTMA newsletter I got it from says it can be freely distributed).

 

33 U.S. trade associations calling for termination of steel and aluminum tariffs [PMA and NTMA mention]

33 U.S. trade associations calling for termination of steel and aluminum tariffs 
Post Online Media
By: Christian Fernsby
6/9/21

The associations’ letter builds on a separate letter from 300-plus U.S. manufacturing companies who last month requested that the Biden administration put an end to these tariffs, which are damaging a wide range of U.S. businesses. 

Since their inception, the 232 steel tariffs have caused a steadily increasing array of supply disruptions and price fluctuations for some of the most critical inputs used by U.S. manufacturers, effectively handing a competitive advantage to overseas producers of steel-based products able to source their inputs at standard global market prices. 

"Dear President Biden: 

"On behalf of the undersigned associations representing multiple sectors, hundreds of thousands of businesses and millions of American workers across the country, we are writing to urge you to terminate the Section 232 steel and aluminum tariffs and quotas on our national security and trade allies. 

"These tariffs and quotas continue to hurt small, family-owned businesses and the communities in which they built their companies, while fracturing relations with overseas trading partners and spurring a frenzy of retaliatory trade measures against both related and unrelated industries. 

"The tariffs intended to help the steel and aluminum producing industries imposed substantial costs on a much broader segment of the U.S. economy. The restriction on the supply of goods and raw materials resulting from the tariffs has sent a ripple throughout downstream industries, disrupting supply chains and threatening the economic security of American workers. 

"Our members rely on the movement of their goods and inputs without constant government intervention that causes delivery delays and arbitrary price spikes. 

"We encourage you to work with our national security and trade allies during your meetings in Europe in the coming weeks to lift the Section 232 steel and aluminum tariffs. 

"We are encouraged by your Administration’s recent announcement that it will commence negotiations with the European Union to address global steel and aluminum excess capacity and an end to the Section 232 tariffs. We strongly encourage you to expedite these discussions in order to reach agreement as soon as possible to avoid further damage to the U.S. economy and harm to the vital relationships between America and our national security and trade allies. 

"Our businesses sustain communities and create jobs across the country that far outweigh any intended benefit of the Section 232 steel and aluminum tariffs on those two industries. To grow U.S. jobs, we urge you to lift the steel and aluminum tariffs, negotiate the removal of retaliatory tariffs on American exports, and support innovative policies to make our businesses more globally competitive. 

"Sincerely, 

Air-Conditioning, Heating, and Refrigeration Institute (AHRI) 

"American Apparel & Footwear Association (AAFA) 

"American Petroleum Institute (API) 

"Associated Builders and Contractors (ABC) 

"Associated Equipment Distributors (AED) 

"Associated General Contractors of America (AGC) 

Association of Equipment Manufacturers (AEM) 

"Association of Home Appliance Manufacturers (AHAM) 

"Auto Care Association

"Beer Institute

"Border Trade Alliance (BTA) 

"Coalition of American Metal Manufacturers and Users (CAMMU) 

"Experiential Designers and Producers Association (EDPA) 

"Flexible Packaging Association (FPA) 

"Footwear Distributors & Retailers of America (FDRA) 

"Hands-On Science Partnership (HOSP) 

"Industrial Fasteners Institute (IFI) 

"Motor & Equipment Manufacturers Association (MEMA) 

"National Council of Farmer Cooperatives (NCFC) 

"National Foreign Trade Council (NFTC) 

"National Marine Manufacturers Association (NMMA) 

"National Tooling and Machining Association (NTMA) 

"North American Association of Food Equipment Manufacturers (NAFEM) Outdoor Power Equipment Institute (OPEI) 

"Pet Food Institute (PFI) 

"Precision Machined Products Association (PMPA) 

"Precision Metalforming Association (PMA) 

"Promotional Products Association International (PPAI) 

"Specialty Equipment Market Association (SEMA) 

"Truck & Engine Manufacturers Association (EMA) 

"U.S. Apple Association

"U.S. Chamber of Commerce

"United States Fashion Industry Association (USFIA)."

[RedDenver]

2 hours ago, BigRedBuster said:

And I disagree with that.  

Reasonable people can disagree. I'm presenting some of the reasons I disagree with your take on inflation.

 

@JJ Husker while I agree that tariffs could cause some inflation pressure in some industries, I think it's relatively minor at the scale of the whole economy.

[JJ Husker]

51 minutes ago, RedDenver said:

Reasonable people can disagree. I'm presenting some of the reasons I disagree with your take on inflation.

 

@JJ Husker while I agree that tariffs could cause some inflation pressure in some industries, I think it's relatively minor at the scale of the whole economy.

Like you say, reasonable people can disagree but usually one of them is more close to right than the other.  I think you're being shortsighted if you can't see how steel and aluminum spreads into and contributes to costs in most every facet of the economy. A more obvious similar example might be when gas significantly increases (as is also occuring now).  What we're seeing happening right now is not solely due to the economy picking back up from the pandemic.

 

Just a couple examples from my small business. We primarily sell steel based products to the food processing industry.  The majority of my raw material costs have increased anywhere from 50% to 300%+ in just the last few months. An average (generic) thing we produced 4 months ago and sold for $2000 is now going for about $3150. Assuming everyone along the way passes these increases on to their customer (like I do), there are a whole bunch of significant cost increases occuring all across our economy. Some of this is due to increased demand which may be somewhat temporary but a bigger portion of it is due to the tariffs and other accumulating inflationary pressures. I am having to increase my labor selling prices just to help make up for lost sales and increased costs. And this is not allowing for increased labor costs yet, which are surely going to be required soon to retain employees as they see their paychecks gobbled up.  In normal times I would hold my quoted prices for 20 to 30 days. Currently I can't hold pricing for even a full day. And I'm not being hyperbolic. It's f#sking nuts.  And it is impacting virtually everything. I don't think we've begun to see the true impact on the broader economy.  All I can say is, if you like meat, you better stock up now. And that is just one example.

[teachercd]

1 hour ago, JJ Husker said:

Like you say, reasonable people can disagree but usually one of them is more close to right than the other.  I think you're being shortsighted if you can't see how steel and aluminum spreads into and contributes to costs in most every facet of the economy. A more obvious similar example might be when gas significantly increases (as is also occuring now).  What we're seeing happening right now is not solely due to the economy picking back up from the pandemic.

 

Just a couple examples from my small business. We primarily sell steel based products to the food processing industry.  The majority of my raw material costs have increased anywhere from 50% to 300%+ in just the last few months. An average (generic) thing we produced 4 months ago and sold for $2000 is now going for about $3150. Assuming everyone along the way passes these increases on to their customer (like I do), there are a whole bunch of significant cost increases occuring all across our economy. Some of this is due to increased demand which may be somewhat temporary but a bigger portion of it is due to the tariffs and other accumulating inflationary pressures. I am having to increase my labor selling prices just to help make up for lost sales and increased costs. And this is not allowing for increased labor costs yet, which are surely going to be required soon to retain employees as they see their paychecks gobbled up.  In normal times I would hold my quoted prices for 20 to 30 days. Currently I can't hold pricing for even a full day. And I'm not being hyperbolic. It's f#sking nuts.  And it is impacting virtually everything. I don't think we've begun to see the true impact on the broader economy.  All I can say is, if you like meat, you better stock up now. And that is just one example.

Inflation is coming and hell is coming with it (Wyatt Earp, sort of)

 

Not to mention a housing bubble that is about to burst faster than I did in high school...and college...and well even now.

 

And what the hell is going to happen to car prices?

 

And interest rates, will be very interesting.

 

With that said, keep buying shipping stocks because they are HOT!

[RedDenver]

1 hour ago, JJ Husker said:

Like you say, reasonable people can disagree but usually one of them is more close to right than the other.  I think you're being shortsighted if you can't see how steel and aluminum spreads into and contributes to costs in most every facet of the economy. A more obvious similar example might be when gas significantly increases (as is also occuring now).  What we're seeing happening right now is not solely due to the economy picking back up from the pandemic.

And I've been hearing about how inflation is coming for my entire life and it's never happened. But it's regularly trotted out as a boogeyman as to why we have to cut government spending, so I remain extremely skeptical until proven otherwise.

[JJ Husker]

2 hours ago, RedDenver said:

And I've been hearing about how inflation is coming for my entire life and it's never happened. But it's regularly trotted out as a boogeyman as to why we have to cut government spending, so I remain extremely skeptical until proven otherwise.

Thats fine. I’m not usually concerned much about inflation. And I haven’t seen it trotted out as any kind of boogeyman. But I have been in my line of work for about 35 years and I’ve never seen such rapid and extreme  increases in so many things. Maybe its just anecdotal but it sure seems like something economically unpleasant is afoot.

 

BTW how old are you? I’m 58 and I haven’t heard jack squat about any coming inflation. Although I do remember some s#!t that happened in the 70s and 80s. I remember 18%+ mortgages...

[teachercd]

21 minutes ago, JJ Husker said:

Thats fine. I’m not usually concerned much about inflation. And I haven’t seen it trotted out as any kind of boogeyman. But I have been in my line of work for about 35 years and I’ve never seen such rapid and extreme  increases in so many things. Maybe its just anecdotal but it sure seems like something economically unpleasant is afoot.

 

BTW how old are you? I’m 58 and I haven’t heard jack squat about any coming inflation. Although I do remember some s#!t that happened in the 70s and 80s. I remember 18%+ mortgages...

Thanks Jimmy Carter!

 

Also, inflation already started.  1.79 for a cheeseburger at McDonalds!  When I used to get hammered after college and we would hit up the arch...a double cheeseburger was 1 dollar!!

[Archy1221]

 

[BigRedBuster]

2 hours ago, Archy1221 said:

 

Wtf????

 

he’s an idiot. 

[funhusker]

10 hours ago, teachercd said:

Thanks Jimmy Carter!

 

Also, inflation already started.  1.79 for a cheeseburger at McDonalds!  When I used to get hammered after college and we would hit up the arch...a double cheeseburger was 1 dollar!!

I remember $.39 hamburger and $.49 cheeseburgers.  I want to say the Big Mac meal was $2.99.

[teachercd]

16 minutes ago, funhusker said:

I remember $.39 hamburger and $.49 cheeseburgers.  I want to say the Big Mac meal was $2.99.

It was!

 

The two cheeseburger meal was also 2.99, that was my go to back in the day.  Now I think it is 6.99

[commando]

10 hours ago, Archy1221 said:

 

replace "inflation" with "tariffs" and you have something correct there.

[Archy1221]

9 hours ago, BigRedBuster said:

Wtf????

 

he’s an idiot. 

He’s not.  

[Guy Chamberlin]

Just heard an interesting stat last week.

 

Apparently there are 60,000 jobs available for truck drivers.

 

That's right. Demand for truck deliveries and truck drivers is 60,000 employees short. 

 

We've waited 5 months for a bathroom fixture, and I think they're lying about the delivery time for our new dishwasher.

 

#firstworldproblems