Getting Screwed

You probably already suspect that you are being screwed as a result of the tax giveaways for the wealthy in the so-called "Big Beautiful Bill Act," but did you realize that Der Furor's trade policies are also screwing ... screws?

I call your attention to this article from the New York Times: [Der Furor’s] Tariffs Are Damaging America’s Biggest Foreign Source of Screws. It seems that Taiwan, which every year exports to the United States tens of millions of screws in thousands of different types is being hammered by Der Furor's tariffs on steel, aluminum, and finished screws, with orders to a typical factory down nearly 20 percent compared with the same time last year. 

The goal of Der Furor's tariff policy - to the extent that it has a definable one - is to bring in vast amounts of money to fund tax cuts for the rich while permitting American manufacturers to recreate domestic sources of manufactured goods ... like screws. To some extent, as the article points out, that is happening. But American manufacturers in the short term cannot produce the millions of screws in thousands of different types that Taiwan can, at least not until more factories are built and domestic (i.e., tariff-free) sources of steel and aluminum are developed. And, of course, domestically-produced screws will be more expensive because of higher labor costs and the investments to be made in new factories. Trust me, say Der Furor and his economic advisors ... it'll all work out. Short-term pain is worth it when you look at the magnificent manufacturing future shimmering on the horizon.

I have in my garage, as do most average do-it-yourselfers, a vast number of screws in assorted lengths, diameters, styles, and materials, left over from various projects over the years. But Bilbo's First Rule of Do-It-Yourselfing (which has never been wrong yet) says that "Regardless of how many screws and nails you have, you will not have the ones you need for whatever you are doing." This - not overpriced power tools - is what keeps Home Depot, Lowes, and smaller hardware stores in business. And as screw prices keep going up, first because of tariffs and later because they're more expensive to make domestically, you'll keep feeling that big economic screwing get more painful.

Buy your screws now ... it'll minimize the screwing you'll get later.

Have a good day. More thoughts coming.

Bilbo