Nobel Laureate Paul Krugman, Dynamic Pricing and Labor, Brazil’s Rare Earths Bet

Trade and Tariffs - Trump administration's tariffs are negatively impacting the standard of living by increasing costs and reducing productivity [6][7] - While consistent tariffs are bad, the uncertainty and volatility of tariff rates are causing significant disruption to businesses and investments [9][10] - Tariffs are being absorbed by U S businesses and consumers, not significantly by foreign exporters [11][12] - Tariffs on inputs into U S manufacturing are raising costs for U S businesses [14] - Trump's tariffs may generate revenue like a sales tax, but are unlikely to yield the $300 billion claimed [21][22] - The U S has violated international trade agreements, potentially damaging its credibility [24][25] Dynamic Pricing - Dynamic pricing is being used by companies to charge different prices based on customer willingness to pay and market conditions [26] - Dynamic pricing can benefit sellers by optimizing revenue, but may face consumer backlash if not perceived as beneficial [27] - Dynamic pricing can lead to intense competition and potentially erode industry profitability, as seen in the airline industry [28] - Implementing dynamic discounting, rather than simply raising prices, may be a more effective strategy [29] Rare Earth Minerals - China dominates the rare earth mineral market, controlling around 60% of the overall market and nearly 100% of heavy rare earths [29] - The U S imports 95% of its rare earths from China, creating a vulnerability in defense systems [29] - Brazil is attracting miners to its mineral reserves, aiming to become a reliable non-China rare earth supplier [30] Housing Market - The U S is experiencing a housing crisis with rapidly rising housing prices due to land use restrictions and construction costs [30][31] - Trump administration policies, such as tariffs on Canadian lumber and restrictions on immigration, are negatively impacting housing supply and affordability [32] - Politicizing the Federal Reserve could lead to higher mortgage rates and reduced housing affordability [35]