On January 20, 2017 Donald J. Trump became the 45th president of the United States of America, and his first order of business is to figure out how to build that wall he promised. There are a couple of ideas that are being tossed around, the first one being that the U.S. will pay for the wall and Mexico will reimburse us in the following years. The second, more likely option, is a 20% import tax on all things from Mexico. Problem solved, right? WRONG!
Big businesses, like Walmart, will have to pay this 20% import tax on most of their inventory. This means that their profits are going to decrease a significant amount, unless they do something about it. So what do all businesses do when their costs go up? THEY RAISE THE PRICE. Walmart and other big businesses are not fools, they’re smart. When import taxes go up, so do prices of the product or service the company is offering. How else are they supposed to make up for the dramatic decrease in profit from the import tax?
So what does this mean? On a small scale it means that most families that shop at supermarkets, such as Walmart, will have to pay a couple more dollars every visit. No big deal right? WRONG AGAIN. The extra money that Walmart will be bringing in from this hike in prices is going straight to the import tax. So if the money from consumers is going to pay the import tax, and the import tax money is going to pay for the wall, doesn’t that mean that the middle class and the poor are going to pay for the wall? DING DING DING!!!
Be prepared for what’s to come. Mexico is not going to pay for the wall no matter what. The ill-informed are the ones that are going to be paying for the wall…just like the rest of America.
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