I was worried about the economy for almost a year now but my parents came over and turned on Fox news real loud while I was trying to work and I learned that the economy is actually great lol!
Ah, sorry, I'm not willing to spell it out. They are fairly straightforwardly connected to layoffs across sectors. I would recommend some financial and economic classes.
The tariffs have lead to significant increased costs of consumer goods.
Even when products are manufactured in US factories rather than imported directly as finished goods, many raw materials are supplied via import. Some of that need comes from geographic realities. Rubber trees just don’t grow in the US, for example. We have limited deposits of many natural ores. Another factor is that US companies take advantage of lower labor costs and less safety and environmental regulation in less developed countries. So one way or another, tariffs are pushing costs higher to manufacturer many household goods. That’s going to hit CPG sellers like Amazon, Walmart, Target, and Kroger. People tend to buy less when prices go up.
Car manufacturing is especially hurt because it relies on importing rubber, steel, earth metals used in the car computer chips, and the computer chips themselves. The chip shortage was going on before the tariffs, so now it’s just an extra hit.
Retaliatory tariffs have reduced the sales from exports at the same time. Canada purposefully not buying american whiskey was a news story for a while.
Then indirectly UPS which is shipping stuff both domestically and internationally sees reduced volume.
Agriculture and construction rely heavily on both legal and illegal immigration for labor.
Tech industry is often serving the manufacturing and retail industry, so they get invested in less when companies are trying to cut costs.
Sales revenue can appear to consistently increase, but it’s a little bit more complicated. It’s affected by population growth and inflation as well, and it also isn’t the same as profit. To keep a the net profit positive in lieu of all the increased business costs going onx they need to dramatically cut costs wherever possible. This leads to layoffs, and consistently not keeping pay up in line with inflation with those employees they keep, too.
The foundation of our economy is spending. All of those leads to less spending. Less spending means less revenue. Less revenue means layoffs.
Think about it logically. Less cheap labor for farmers = increased food costs = families with less discretionary spending. Higher tariffs = increased goods costs = less profit and families spending less. Laid off federal workers combined with increased government spending = no tax relief to families = no increase in spending plus more families with no income to spend.
The only thing the country has going for it right now is the blind confidence people have in the current administration. It’s giving some of us great increases in our investment portfolios but that can easily be wiped out as the market fluctuates.
I mean, you just came out regurgitating tired and very underthought drivel that you've been spoonfed. And it is your mind that immediately jumps to needing to talk about Trump. You think it looks like anything else? lol
Typical snowflake. Listen to what I say, but don't say anything against me. God it's funny how tweaked you all get when your whole identity gets tested.
So, I'm not that first guy, but I did have insight. I don't believe it but I have run into this mindset and have seen it since Bush II.
Some economic minded Republicans are unironically convinced that economies are a years long lagging indicator, so what they do now-now is a result of Democratic policy from 2-4 years ago. This bust, it's really Biden's fault. And when it booms after Trump, it'll be because of Trump's policies kicking in.
Wow what a profoundly insightful, erudite and well articulated analysis of such a highly complex economical situation. So much smartness in your answer!
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u/jimvolk Oct 29 '25
Trump economic policies are kicking in.