DID YA HEAR? 80% of the over 250K crowd is "Small Business"!

[DiveCon]

I see the latest Republican buzzword is "class warfare." Editec must be rolling over in his grave, figuratively speaking.

because that is exactly what it is
and its not new
you are way too naive

Yeah, right...it's not class warfare when the entire country bends over backwards to give capitalists every benefit to succeed.

wow, you are not just naive, you are fucking stupid

 

[DiveCon]

As a Buyer, price is always a calculation in the demand....

What did you sell it for last year, what will they pay for it this year...if your costs go up and demand was healthy prior to such, then you calculate this in to your purchase for this year's demand and buy less, but sell something more of another item that you misjudged demand and it is higher than you expected.

Also, if the previous years demand for the product was so great, and the price of the product this year was going to have to retail for $10 bucks more than last year for the same product because your cost of goods went up or taxes or duties went up or there was a shortage in one of the materials in the product or freight costs went up drastically because of gasoline prices rising or any number of reasons the same product costs more this year than last year.....instead of taking the buying less of that product because the demand will be reduced with the retail at $10 bucks more, OR YOU CAN TAKE THE APPROACH to buy the hell out of it, double what you bought last year and promote it barely above margin on it's sale price and get your return on investment and profits through mass selling it, at the lower margin.

Basically Dive, no one is boxed in...even if prices rise on one of your products.

If it rises on all of your products, then it rises on all of your competitor's products as well, so if it had a demand before, it will still have a demand afterwards...

I went through a leather crisis once, back in the 80's...when leather couches and leather chairs made their way back in to fashion and most every home in America....i bought women's shoes, the prices of all of our shoes for women went from about 29 bucks on average to $39 bucks on average from one season to the next.....we, the business, prepared for the worst.....there was no way women would pay 30% more for their footwear from one season to the next....this was super inflation....no way would it be accepted, so we bought low...we still would meet sales plan because each shoe would be selling for a higher price so this actually kept our salesplan flat....but with less items actually being sold.

Talk about being caught with our pants down....the consumer couldn't give a hoot about the 30% hike and we ran short on inventory and had to scrample to place more purchases to fill the demand.

Demand is a strange thing....those that can read it, will be your success stories in business, because they will have the right amount of supply bought to serve the demand appropriately and profitably.

Demand comes first then supply or projected demand, then supply.

I AM NOT SAYING supply is not important, it is very important, but the demand is what drives the proper supply....for any business....we projected our salesplan, down to the item, translating such in to a dollar figure of what was needed in inventory, in the supply.

Care

And back to my point. Taking your story what would have happened if you could not source any shoes because all the suppliers you had available were sold out?

Again, my point isn't that supply DRIVES demand, that's stupid. The point is, if you want to grow an economy, you make it easier for people to form businesses to supply the demand that exists in the market. This provides additional jobs for people and increases salaries and tax revenues. That's why tax revenues can increase while marginal rates decrease. As more people are put back to work eventually the market for people reaches a tension and price for people increases. This causes increases in wages and, as a result, tax revenues.

But, it's all academic at this point, we won't be seeing any of that for years.

It was all academic then, too.

We gave the superwealthy the largest tax cut in our adult lifetimes.

Did we see the economy thrive? No, in fact quite the opposite.

The money they got went into debt instruments, overseas investments, and stock market bubbles.

There's nothing wrong with stimulating capital formation when capital formation is needed.

But when it's NOT needed (like when Bush got that tax cut passed) then all it does is put too much money into the hands of too few people who will NOT invest it into job producing businesses.

It's the DEMAND side which is hurting now.

Hence this so-called stimulus package.

WRONG again
everyone that pays taxes got the SAME tax cut
someone that doesnt pay income taxes can NOT get them cut any more than they already are