But. If you run firms like mine that does infrastructure work, mainly stormwater protection, drainage systems, and flood mitigation. A company that runs large diesel trucks, with many pieces of equipment that are also diesel powered. Then fuel costs become a major issue. This isn’t a dress shop or candle store.
Without a doubt, there are businesses which are more sensitive to energy costs than others. That said, it should be part of the business plan that they will fluctuate. If you are profitable at $2 a gallon and break even at $4, that’s one thing; but if you’re breaking even at $2 and way into the red at $4, you’re undercapitalized; you don’t have a viable business plan. Energy prices fluctuated prior to Trump, they’ll fluctuate after him.
There are many industries, from construction to services, that have to seriously look at what’s to come. You ever hear the motto, “if you fail to plan, you plan to fail?” That comes into play here.
I agree. If you’re going to be a going concern, you have to be able to survive under the worst-case scenarios as well as the typical and good ones. This is why we now stress test the major banks, after all.
Then come the tariffs. Your typical dress shop, for example, that likely imports much of their product, can just pass the extra costs on to their customers. Simple enough to explain.
Tariffs are bad. But I’ve been telling people since the tariff matter started to READ PETER NAVARRO. Because tariffs here are not being used as a protectionist measure; they’re being used as a tool to get those corporate-friendly trade deals renegotiated in Main Street’s favor. They are not being used to re-institute protectionism long term.
These are all valid concerns that are never part of any study or reasoning when discussing the economic impact of Trump’s fast-and-loose policy decisions.
Well, if you read Navarro, you realize that the tariffs were not some fast-and-loose policy decision. They are well planned and well thought out, and have been.
I hope this offers some clarification on my where I was coming from on my original post. I appreciate the dialogue and I hope you have a wonderful Sunday.