Featured Trump tariffs put the US auto industry in disarray

I'm not sure it's a paradox exactly ... there can be plenty of supply and plenty of demand for something at the same time. Bread might be an example. Usually makes everybody pretty happy.

Whether it's the situation the current auto market is in, that's an empirical question (that I don't have the answer to).

 

Reaching 6 figures in

 

Supply and demand are a way of explaining why prices change. The concept of supply and demand is the difference between the two. If both go up, then prices don't change. If both go down, then prices don't change. Supply, demand and price are like acid, base and PH. Saying that supply and demand both went up and prices are now high is like adding both a base and an acid together in equal proportions and saying the PH of the substance went up. Either you have more acid or more base; more of both is meaningless. More of both supply and demand is also meaningless.

Even if supply is actually higher than previously, if prices went up then that's because demand went up faster than the supply did. THEREFORE: demand went up when compared to supply. Car dealers have to pay for their inventory. The more supply, the more money they bleed. The more supply each has individually, the more they pay and the less money they make. This incentivizes them to lower prices, to get cars moving. If cars don't move eventually they have to lower prices until people buy them. If they don't lower prices it's because someone is buying the cars. That means there is demand. If the price stays high then demand has gone up in comparison to the supply.

 

The world is a Paradox since 2020 man, where have you been? I can't explain it, and if you would have brought that up pre-2019..I would concede the debate. But there's simply high demand and high supply for used cars....that's why NEW cars are lot rotting right now and dealerships are going under.

 

That's completely backwards my man. The more supply, means they are making enough money to purchase that inventory to resell. Right now, they are not incentivized to LOWER prices at all because people are settling for used vehicles instead of strapping down for double and triple priced NEW ones. The only sentence you got correct there, is when cars aren't moving they eventually have to lower the prices..which ISN'T happening other than maybe on gas guzzler SUV's and Diesel pickups that WAY over priced on used lots.

In your last sentence you're now agreeing with everyone here..the prices are high, there is demand, and there is PLENTY of supply of used cars at lots and auctions. At this point as a repair shop, I'm the first and last waves of people fixing up older cars and now the demand for repair is going down because it's cheaper to almost buy a fresh used car at this point and start over. It's a crazy new world that will continue to get worse as BRICS nations walk all over us and the dollar collapses. Be prepared as much as that means.

 

it's why dealers keep contacting former customers to buy (read: steal) their cars

 

I've got nothing in principle against using similes to explain concepts, but somehow the ones my econ profs used seemed to be a bit more involved and have more moving parts.

I haven't got a lot of personal experience with new car pricing, as my 1988 Mazda 323 was the only car I ever bought new. It was $8,995 if I remember right. Out of curiosity, I tried converting that to mid-2025 dollars just now and got $24,588.44.

That works out to an annual inflation rate of 2.755% over the 37 intervening years, not far off the round 3% ballpark that was in econ texts of the day for when you wanted to estimate future inflation over a long haul.

Looks like a 2025 Mazda3 S starts at $24,150 sticker ($25,385 with "destination charge"). It has 6-speaker audio, radar cruise with stop&go, blind-spot monitoring, A/C, a 6-speed automatic transmission, 4-wheel disc brakes and ABS, lane-departure warning, lane-keep assist, and driver attention alert.

Mine had no airbags, no A/C, no cruise control, and a 5-speed manual. Did have electronic fuel injection though. My first non-carbureted car.

 

Look. Either cars are expensive of they aren't. End of story.

A 1965 VW Beetle went for just over $1,500 brand new, or about $16,000 in today's money.
A 1994 Geo Metro went for $7791, or about $17,000 in today's money.

The real question is how much was insurance, fuel, maintenance and repairs, and add to that the cost of everything else. A mortgage back in the 1940's and 50's was around half or less of what a full-time minimum-wage earner made. Now it's about half of what a full-time median-wage earner makes. It's kind of hard to afford a $25,000ish Mazda when you gotta spend half your income on housing.

 

I was raised very poor and, now, I'm making more money in a month than I made all year the first 10-working years of my life. That's not a testimony about myself, it's a testimony about the INCREDIBLE land of opportunity that we live in. Hard work and determination DOES pay off! Go work your butt off in China and Cuba and what do you have? Probably barely getting by and you don't own squat.

"White privilege?" I guess I'm still waiting for mine! (If there really is "white privilege" why did Pocahontas pretend to be Native American?") I'm about 1/8th real Native American but haven't gotten anything from it, and I don't expect to....it's just a proud heritage. I was pissed when the Washington Redskins changed their name. "Redskins" is a word WE called ourselves. Bring back Redskins and Indians and all the other names the woke crazies took away. (And bring back Aunt Jemima and the cute Native American on the Land o Lakes butter!)

Wow, folks don't think tariffs work? Wasn't hard to find, and I'm just a dumb old Redskin!

https://archive.ph/NwKHa

 

Sounds like the USA for a lot of us right now. I don't understand how most of my fellow workers and I can all be working many days of overtime on top of a "good paying job" and still not have enough even to buy a house. Where is this wonderful fantasy USA that is full of opportunities? I don't see it. Those that reach the American Dream either are much older, from generations ago that didn't have the prices we have today, or are just lucky.

 

lol great deflection. I think there's enough good evidence and advice here that maybe you will understand eventually.

 

We actually agree on this. The people, "boomers" as you call them born between 1946 and 1964 were of the most fortunate of any generation in history, anywhere. I won't say it wasn't fair, they just were lucky to have been young adults in the best time to make a fortune in America's history..(and they got handed generational wealth from the WW2 vets). They rode the coat tails of the WW2 and Great Depression heros (like my grandparents) into the greatest time to ever be alive with low interest rates, low energy costs, very good pay (yes they did work hard) but their money stretched a LOT farther then and were able to pay for homes in cash or for cheap, cheap cars, and industries that were just starting to boom in the 60's and stopped in the early-mid 2000's.

I understand why they say "just work harder" because it worked for them in those conditions but they are out of touch with the realities that Gen X to Gen Z are facing with the Oligarch take over of our country and the destruction of the economy. So both ideas are correct, just were at different times.

 

This is the economic state we live in today. Someone coming out of college is worse off today financially than someone who made minimum wage back in 1980. For a lot of people, owning a house is literally impossible. Then these tariffs only make things more expensive on top of that.

If anyone, boomers or otherwise, comes up and says that the economy is great and the USA is full of opportunities, then I want to see the math. When someone says that a new Toyota Corolla is an affordable car, I want to see the math. People can't pay 49% of their income for housing, 23% for food, 25% to 150% for healthcare costs, 25% for a new car and so on and so forth while going to work from 5:00am and getting back at 7:30pm. Stop saying that all that these people need is to just work harder. The world no longer works that way.

For those who keep preaching that the US is full of opportunities and people just need to work harder, find a job you think is a good paying job, one that doesn't require a genius to do, and that has a known salary that isn't just something you made up or that that one guy down the road claimed he made, write down how much it actually pays, find a house in the area and do the math and see if that job would pay for that house or not, and continue writing down a reasonable budget, food, car, health, etc., and then come back and tell us where this golden opportunity is.

 

A huge problem with younger folks is that they walk around with a victim mentality. News flash...you're NOT oppressed because of the color of your skin...you can find ANY color skin on billionaires and millionaires. Younger folks also believe if you don't go to a "good college" you won't get anywhere. Totally false, probably more now than ever before. As a manager who hires engineers, I'm more interested in work ethics, honesty, and the ability to learn. Great, you got a bachelor's from a prestigious school five years ago but what did you do with it? Did you job-hop every 6-months because you're not earning $200,000 a year right off the bat? Job hoppers like this get a hard "pass" when HR asked me if I want them to make an offer. No, I want folks eager to work hard, willing to learn, and can be part of team.
I've hired many young folks who, really, didn't have the education background for the position but I could see these qualities in them and, guess what, my hunches have been correct about 95% of the time.
Show up for work on time, be willing to learn something new, step up when you see a teammate needing help, and be willing to help your company be successful. Sure, you may be "overqualified" but just use this opportunity to get to the next step in your career.

 

How the heck did the hockey team Blackhawks not get blacklisted




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The Black Hawks, probably, told the woke lunatics to go pound sand!!! I'm, also, glad the KC Chiefs didn't cave to the woke crowd.

 

I can introduce you to my buddy, Trevor, who dated my daughter about 15-years ago. They were graduating high school but he, really, wasn't interested in going to college like my daughter was. I talked to him about serving in the military but he had a single Mom and really didn't want to have to leave. So we talked about trade schools and he liked hearing what the HVAC professional do.
Long story short, Trevor got his HVAC cert PAID FOR by a local company who hired him as an apprentice and he learned both on-the-job and at a local tech school. I ran into him at our Home Depot and he's, now, in charge of the commercial side of the house making well into 6-figures and loving his job.
Find something you're good at and you like, learn from the professionals, and get whatever certificates or licenses needed, and you'll be successful.
Oh, my daughter is a public school teacher but not really happy about the lousy salary Colorado pays their teachers, which is a crying shame. When they legalized pot here about 20-years ago, they gave so many promises of fixing our crappy roads and paying school teachers what they are worth. Today, they rake in $2 Billion a year from pot and our roads are, still crap, and school teachers are leaving in droves....managers of a McDonald's are paid more than a school teacher...it's just wrong. (And I don't mind saying it....the reason Colorado is becoming a sh#t hole like California is because of the Democrats....good luck finding a Democrat who isn't as corrupt as they can be.)

 

California may come to their senses soon getting rid of a governor who lines his own pockets and eats at the most expensive restaurants even during covid lockdown.


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I don't agree. The majority of people that can't afford a house, that are living paycheck to paycheck, are all white dudes with some of the best paying jobs in their area. When you're at one of the "good paying jobs" in your area and still can't afford a house, then it is not a victim mentality, it is reality.

I can totally agree to that.

So do all HVAC companies pay for one's certificates? Where I work I also got my certification paid for from my job, instead of paying thousands for them. I even got paid for the time I spent to get them. Can't get much better than going to school and getting paid for it at the same time.

So far I make more money than ever. Not quite 6 figures, but still, I make comparable to what lots of others who have been at their jobs for 15 to 20 years also make. But seeing how a living wage is now some $120,000 per year and rising, at least according to the experts that actually can do math, and seeing how at my pay grade I still don't qualify for a house even with having zero debt and with a +800 credit score, what I, and the millions of Americans that make similar wages all make, is not enough for an American Dream.

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Um, no. Sorry, but it doesn't always work that way. I know lots of people who are professioinals and don't make a true living wage.

I and many others have over 20 years experience at our jobs, have all the certificates needed and then some, work our butts off doing over time, and don't make enough to even buy a house.

Sorry, but the economy is NOT what it used to be, and the opportunities are NOT there like they used to be either.

 

Point 5. and 7. in the article are particularly important and would serve as cautionary traits to avoid at all cost to sidestep lifes pitfalls.
Would point people to this article and avoid these 7 deadly pitfalls in life at any cost!

7 Habits Of Unsuccessful People (And How to Avoid Them) |

5. They Are Endlessly Negative
If you don’t have positive thinking, you can’t get anywhere in life. You have to be aware of the power that negative thoughts can have on you. Here are some habits to avoid:

They Find The Bad In Every Situation
People are supposed to find the silver lining in every cloud. Unsuccessful people to the opposite – they find dark clouds in every shining opportunity. For some reason, they’re able to see imaginary bad in all that is good, which stops them from working towards a positive future.

They Dislike Many Things
There’s no end to what a negative person dislikes, probably because they dislike almost everything. They dislike so many people and things that it makes it impossible to get along with them.

They Constantly Complain
No one likes a complainer. Someone who isn’t successful may fall into the trap of complaining constantly. It’s one thing to vent and rant when you’re going through emotional turmoil, but it’s a whole different ballpark to always be running your mouth about what’s wrong with the world.

They Are Never Grateful
Gratitude is one of the most important traits of success. Those who do not practice regular gratitude are less likely to succeed, and they likely have a much worse sense of positive self-esteem, too. (3)

Remember, focusing on the positive will always help you. Don’t get too hung up in the downsides. Look at the upsides and see how you can make them better.

7. They Refuse To Take Responsibility
A successful individual is mature. They know that they are primarily in control of their lives. Furthermore, they hold themselves accountable and take responsibility for what is happening. They don’t blame their circumstances for failure – they recognize their mistakes and move on, armed with more knowledge than before.

On the flip side, someone who is always unsuccessful tends to make a habit of blaming other people. They point fingers and never admit to any wrongdoing. Their pride and ego must be shielded, and they, therefore, never learn anything from their mistakes.

It can be very easy to pass on the blame and insist that you had no control over any given situation. But your actions and reactions are all your own, and you get to decide how you conduct yourself, even in difficult times – so keep that in mind.

"Conclusion:
Only you get to decide what your idea of success is. Once you have that idea, though, it’s time to go towards it with all the planning, intelligence, and determination that you can. Avoid adopting the habits of unsuccessful people and your journey will be much smoother."


No politician or policy is going to determine how successful I am:
To personalize an illustration of this when I graduated High School and turned 18 I had to immediately register for the Selective Service and was drafted and went in the Service right in time for the Vietnam War. Didn't have a say - no one asked me if I wanted to go or cared if I wanted to - refusal = jail time.
Looking back -no big deal - most every young man I knew faced the exact same situation- did not let it define me or set the final course for my life.
Many good young men were not so fortunate and lost their lives in that war - but of course they were just entitled "baby boomers" who had it so easy when they were growing up - right?

Maybe life really is what you make of it!

Just finished taking a very long hike/walk outside on a nature trail passing many other positive and smiling people and thought I would post this last comment.
I'm done posting here - it is a beautiful day in a beautiful world and I'm going to get back out there in it and enjoy every minute of it!