America held hostage
- Thread starter CaptainObvious
- Start date
I cannot find a "one for the commies" thread. Please link it for me and I'll read it.
richter -- "its called overhead" -- it just gets passed on to the consumer.... really? Do you really have a business which deals with the consumer?
I see major demand changes when I go from 300 to 350 for an hour consult. You must be kidding if you think consumers are not price sensitive.
1. If companies try to pass on the costs they sell less product.
2. Many times companies have to absorb the new costs because otherwise they lose too much in sales or market share to competing products or goods.
Demand is not inelastic in the long run for anything and few things have static demand in the short run.
I see major demand changes when I go from 300 to 350 for an hour consult. You must be kidding if you think consumers are not price sensitive.
1. If companies try to pass on the costs they sell less product.
2. Many times companies have to absorb the new costs because otherwise they lose too much in sales or market share to competing products or goods.
Demand is not inelastic in the long run for anything and few things have static demand in the short run.
Of course consumers are price sensitive, but that doesn't mean overhead isn't passed on, it just means margins are lower than we may like them to be. All overhead gets passed on, every dime of it. If you don't do that, you're losing money. The trick, as well all know, is to keep overhead lower than what we're charging for our services/products, and still make a worthwhile profit. In many cases small business people would be better off working for someone else, financially speaking, but then they'd lose the illusion of independence. At some point we all answer to someone, but that's another topic.
Didn't show for me in Search, either.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=211149
Quote from Petsamo:
See? I told you you're a communist!
So if I read it, it makes me a commie? Interesting! Now I can understand why your type is terrified of homosexuals.
Me, I like to have some basic understanding before offering critique. Novel idea, eh?
the point is that richter seem to be implying that that uncertainty over futures cost increase or tax increases would not effect a company's hiring decisions today. He argued these increases are just passed on to the consumer.
There is no way that is true for most businesses. If your net is going down due to taxes or because of health care costs you are unlikely to want to hire more workers.
Because even if you could pass those costs on, you will then sell less.
I find it odd that socialists dispute that point.