America, Block Island, United States discussed on Bob Brinker


Pro the beaches of waikiki to the shores of block island sound it's money talk by breaker along with you we thank you for joining us we do appreciate the company here on america's money program well we've been talking about inflation and inflation expectations on money talk because no question about it this is one of the major chords that investors are going to be looking at as we move forward there's no question here that all eyes are on inflation we've been looking at consumer price inflation which is now risen above the two percent level the current year over year consumer price inflation numbers two point four percent which certainly reflects a lot of things going on right now not only wage growth that also includes will the impact the early impact of the tariffs that have been placed on aluminum steal united states has placed tariffs on aluminum and steel in regards to selected trade partners there have been a number of exemptions of course what happens when you have terrorists is they function as a price increase they function as a tax on consumers because when companies for example purchase aluminum and steel and if they have to pay more for it because there's a border tax which is otherwise known as a tariff then they have to choices they can either pass that additional cost of the aluminum and steel onto their customers they can do that they can tack it onto the price of the product and pass them along to the consumer or they can reduce their profit margin and lower their profits by eating the tax increase the tariff that is themselves and reducing the company the profits now most companies to the extent they have pricing power and that's a critical variable right there to the extent that companies have critical have pricing power they can increase their prices pass it along to the consumer and protect their profit margin if they are in business that does not allow them pricing power because of other products that are on the market that that buyers will go to we'll switch to then they have no choice but to see their profit margin reduced now i should point out that at the current.

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