Poorest US workers hit hardest by slowing wage growth • Hacker News Board

Re: Poorest US workers hit hardest by slowing wage growth

#351

Post by actionfromafar » Tue, Aug 05, 2025, 11:35 AM UTC

NekkoDroid wrote: post #240

Joeri wrote: post #235

Earlier quoted context omitted.

In the short term: fear of reprisals from Trump, as he clearly warned them not to raise prices. In the long term markets find a new equilibrium, as they always do when a new tax is imposed, and that is probably going to be a combination of lower margins, higher prices for the consumer and lower prices for foreign suppliers.

> fear of reprisals from Trump Realistically, what's he gonna do? Shut down the company, which he oh so desperatly wants in the US? Tax them more, driving their cost up more?

Realistically, many companies are going to shut themselves down because their margins will be gone.

Re: Poorest US workers hit hardest by slowing wage growth

#352

Post by kyralis » Thu, Aug 07, 2025, 1:43 AM UTC

WalterBright wrote: post #335

kyralis wrote: post #299

Earlier quoted context omitted.

No. The total tax bill over the next five years was X, given the current laws. Then a bill was passed that reduced that total tax bill over the next five years. This is a tax cut. It's a little absurd to try to claim otherwise.

Failing to increase taxes is not a tax cut.

This is the same as saying that a tax cut with an expiration date should be treated as if it were permanent.

Are you not aware that these things are different? That there is a difference between an adjustment to a proposed budget and a budget that has been enshrined in law?

What's the magical time horizon that changes this? If I change the taxes due for 2026, is that a tax cut? How about 2027? Where's the line between a change in law that is or is not a tax cut with this philosophy?

If you want consistency, a change in law that adjusts the tax burden downward from what the burden would be without the change in law is a tax cut. Therefore, a change in the law that makes previously temporary reduced tax levels into permanent reduced tax levels is a tax cut.

Re: Poorest US workers hit hardest by slowing wage growth

#353

Post by chiefalchemist » Sat, Aug 09, 2025, 9:09 PM UTC

wickedsight wrote: post #243

chiefalchemist wrote: post #216

Earlier quoted context omitted.

And, importantly, tariffs are payed by the importing party. This means they affect the base price of the product and cannot be made progressive Yes. But that cost can be absorbed across the board. The manufacturer can lower their margins. The importer / distributor / wholesaler can do the same. The B2B / B2C seller can do the same. It doesn’t all necessarily get directly passed to the buyer. Another question that few…

> Another question that few are asking is: what has the off shoring of so much manufacturing cost the USA? Looking at the resident of the WH, it appears to be quite a bit. A question that I see ignored by people who ask your question, is 'what has off-shoring brought the US?' The answer is massive economic growth and improvements in quality of live. Off-shoring allows you to make stuff cheaper by keeping the economic…

> The answer is massive economic growth and improvements in quality of live.

Where? Here in the USA? Hint: No. The point is, those gains elsewhere have come at the cost of the US middle class.

We don’t have who we have in the WH, we don’t have the federal debt we have because globalization has been good for the US. Full stop.

p.s. We can get into USA citizens being down graded to consumers, some other time. But that’s not a positive either.

Re: Poorest US workers hit hardest by slowing wage growth

#354

Post by more_corn » Sun, Aug 10, 2025, 4:49 AM UTC

And the higher prices caused by tariffs which amount to a tax on imported goods. The things everyone buys are more expensive due to the president’s antics. And doing business is more expensive so businesses can’t afford to spend it on hiring and wage growth.