The United States government did a favor for Whirlpool last week: decrease competition.
President Donald Trump approved new tariffs on washing machine imports, likely causing LG and Samsung to see decreased sales in the U.S. market, and Americans to suffer price hikes and even job losses. But who will benefit? Whirlpool.
From January 22 to January 26, Whirlpool shares surged 11.6%, increasing its market capitalization by $1.4 billion. The stock is now trading at just over $182.
This is why U.S. corporations spend billions of dollars lobbying Washington. If they can get some protection from the state, then they will hand over campaign contributions. Civics and economics classes should take last week’s news as a lessonplan in crony capitalism and protectionism.
Time for price hikes and job losses!
(Chart courtesy of American Enterprise Institute.)
Once again we are taken to the cleaners. Not like we can be trusted to decide for ourselves which washer to buy. Just different sides of the same coin. Heads or tails we lose. May be it’s time to stop playing a rigged game? dtinusforcongress.com