Quote:
Originally Posted by The Yen Man
Still don't understand your math logic.
At the end of the day, a 25% increase on $100 retail price is still $25. If you jack up your retail price by $25 (and it still costs the same to produce it), why do you need to jack it up an additional $13 artificially?
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Because they would need to pay 25% of the final price. If they raise their price to $125 then they need to pay $125x25%=$31.25 so they end up with less than their original $100. If they raise it to $133 then 25% of that is $33 so they are left with the original $100.
It’s the same issue where it takes a larger % gain in the stock market to make up a smaller % loss, since the smaller % loss is on a larger amount.
Anyway, this is all hypothetical unless Trump actually comes out and says producers must pay.