One Week Thoughts
Trump has served one week of his term, and what a week it has been. The recent event has been the threat to impose tariffs on Colombia, and it seems a lot of people don't quite understand how tariffs work.
See, when we impose an import tariff on goods from a foreign country, it's actually us Americans that feel the effect. If tariffs were imposed on Colombia, consumers stateside would see an increase in price on not just products directly imported by that country, but also products made here with products from Colombia (like Starbucks coffee, for example.) Considering practically any coffee bean farming done in the US is done in Hawaii, where their yields were miniscule to the amount we consumed (hey, at least we're #1 at something,) it's pretty safe to say tariffs would've been something that would've hurt the average person's pockets just a bit more.
Not only that, but even without tariffs being imposed Colombia may decide to take their business elsewhere. Considering that we imported $5.59B worth of crude oil from them in 2023, it would've affected quite a bit more than just the cost of coffee and flowers. Metals, food, clothes, some would be affected very little while others could have detrimental consequences that, as always, get pushed onto us, the consumers. In order for that to change, there has to be a continual investment made into bringing this country back to it's exporting glory days by building up American infrastructure. That would be the only situation where tariffs could be imposed on Colombia, or Mexico, or China with minimal effect on US citizens. It was a wreckless move that was not made with any consideration of us, the people.
The median income in the United States in 2023 was $58,023. That's $4835.25 a month. The national average from rent in 2023 was $$1,036 a month. The average electrical bill was $136.84. $118 a month average for water in 2022, finding the average for 2023 is being difficult, but it's likely safe to assume it went up. Average on gasoline per month in 2023 was $204, $504 a month on groceries, $167 for auto insurance, $1214 a month average for medical (healthcare and insurance,) that brings us to 3,379.84 a month. That's not factoring in internet and cellphone bills, streaming subscriptions, average cost of auto maintenance, homeowner or renters insurance, and other common bills.
In order to bring home that median $4835 a month with 40 hours of work, you'd have to be getting paid $30.22 an hour. At the end of 2023, the average hourly wage nationally was $11.12. At that wage, you would have to work 108.71 hours to have the same takeaway, almost triple the amount of time. Even at 60 hours a week, that $11.12 an hour is only bringing home $2668.80 a month, which means without familial help, government subsidies, and serious penny-pinching you're going to end up homeless. This is why there's been repeated calls to raise the federal minimum wage, as the stark reality for a good swath of Americans is that they are teetering on the edge of financial ruin just from simply covering the necessities that they're able to. That is why tariffs, with this country in its current condition, are not to our benefit. They couldn't care less about what harm cost increases could do, as they've hoarded enough wealth to not be affected.
Until next time.
