J. F. Shumate

We Are In Serious Trouble!

Don’t Mess with My Avocado

Avocados are part of my diet. I eat them raw with lemon and salt. Make them on toast for breakfast with virgin olive oil, lemon, and salt. And on taco night, it’s guacamole time. 

But now my diet is threatened by stupid tariffs. 

The BIG Tariff Picture

Economies grow when our trading partners play by fair rules. Targeted tariffs applied when a trading partner is dumping products at a loss are rational because they are not playing by the rules. But broad-brush tariffs hurt everyone. In 1930, instead of helping the country during the Great Depression, the Smoot-Hawley tariff law resulted in worsening and prolonging the worldwide depression.

The new broad-brush tariffs will result in lower imports, hurting our trading partners’ economies. That could lead to a downward spiral in their country. We cannot purchase the same level of imported goods because our budgets are pretty much fixed, thus we pay more for fewer goods.

If you think your current family budget will be okay, remember who pays for the 25% tariffs on imports…you and I, not China, Canada, and Mexico.

A Real World Example:

90% of avocados come from Mexico. Avocados are selling for $1.66 at my local market. A 25% tariff pushes the cost over $2. Now instead of buying 2 a week, I will start buying 1. Assuming the rest of the avocado aficionados do the same, almost half of Mexico’s crop rots in the trees. And the farmer drastically cuts his prices to try and move his crop. The combination ruins the Mexican avocado farmers’ businesses.

Next, they cut their workforce. That workforce fuels its cars and trucks with gasoline refined in the USA. Since they no longer drive to work, the consumption of USA fuel drops, cutting the major USA oil companies’ profits and possibly causing them to lay off some employees.

Do tariffs make any sense to you? I think it’s lunacy.

Tariff’s Impact On Our Family Budget

Most of us run our households on tight budgets. We are still dealing with crazy inflation created during the Pandemic by the $1.9 trillion American Rescue Plan Act. Tariffs on top of inflation! Tariffs are predicted to add over $1000 in new costs to our already decimated budgets. Think restaurants were hurting from inflation, what will happen if the new tariffs remain in place?

Let’s get some sanity here. I want my $1.66 avocado!!!