Tariffs trip up the all-American RV industry

troubledwaters wrote:

Every millionaire i know borrowed money and used that money to leverage deals to make big time money. Fact is, I have plenty of borrowed money at 4% while my invested money is making 13% right now.

Sorry, not always true.

In reality those "Millionaires" HAD to have SOMETHING to "borrow against" called COLLATERAL in order to get LOW INTEREST LOANS OR LINES OF CREDIT.

You will NEVER become a "Millionaire" borrowing via personal loan OR CREDIT CARD! Try borrowing even $5K from a credit card at typical rates of 21%-25% interest rates or even a "personal" loan (no collateral) which typically is 10%-15% above prime. Yeah, you won't last long doing that..

WISE credit use is what most "Millionaires" typically use and use it sparingly.

Most businesses ultimately end up having to borrow against their "property", that can be buildings and or inventory. When the cost of raw inventory goes up, they MUST make up for that cost and that eventually ends up being passed on to the consumer who buys the companies product.

In the mean time if EVERY company experiences increases in raw materials, they to pass on that cost to the consumers whether it is another BUSINESS or RETAIL/WHOLESALE consumer..

If the company is not able to maintain their margins they ALSO look internally to find ways of reducing their INTERNAL COSTS.. The FIRST PLACE THEY ALWAYS LOOK AT IS THEIR EMPLOYEE HEADCOUNT AND WAGES!

So, if they do not pass on the FULL amount of the increased cost PLUS some extra margin, they will not be able to give pay increases or may end up needing to reduce workforce in order to maintain a good profit margin..

This is not because the company is greedy, it is often because BANKS AND INVESTORS are looking for a FAIR RETURN ON THEIR INVESTMENT!

Each time something goes up (taxes, tariffs, cost of living), it does have a great impact to the final consumer in the end. The consumer must pay more for goods and services therefore they have less to spend.

They the consumers must SPEND LESS since they HAVE LESS TO SPEND and less consumer spending takes money out of the LOCAL economy..

It is a vicious cycle which eventually breaks the economy..

You cannot tax yourself into wealth and "Tariffs" in the end ARE TAXES which are DIRECTLY paid by the end consumer (hint, those tariffs are not hurting China, they have PLENTY of willing buyers from OTHER NATIONS WHICH ARE NOT PLACING TARIFFS ON China made goods!).