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A 20% tariff on wine sounds simple.

But in the U.S., wine moves through a system designed to multiply cost:

Producer → Importer → Distributor → Retailer → You

Each layer adds its margin.

So when the base price goes up, the whole chain compounds it.

Here’s how imported wine moves through the system:

→ Producer sells the wine for $10

→ Importer adds 35% → $13.50

→ Distributor adds 30% → $17.55

→ Retailer adds 40% → $24.57

That’s how a $10 bottle becomes $25—before any tariff.

That’s just the system.

Now let’s add a 20% tariff to that $10 bottle:

→ Producer + tariff = $12

→ Importer markup → $16.20

→ Distributor markup → $21.06

→ Retailer markup → $29.48

The price didn’t rise by just $2.

It rose almost $5—because each step adds margin to a higher base.

That’s the multiplier effect.

This system what put in place after Prohibition.

The government banned direct sales to control alcohol.

They split the chain into tiers to make it easier to tax and track.

It’s not efficient. But it is law.

And that’s just the sales chain.

Even American wine relies on foreign parts.

Most bottles come from China.

Most corks come from Portugal.

Many barrels come from France.

So tariffs raise production costs here too.

A $10 bottle doesn’t become $30 because of a tariff.

It becomes $30 because of the system.

Tariffs just amplify the effect.

If this helped explain wine pricing in America,

please like or repost to help spread the word.

Tomorrow: how we ended up relying on foreign glass.

So what I was trying to say here, although the importer for example

takes 30% initially, he actually takes and needs 3.50$ so he can run his business, and doesn’t care for how much he buys and sells the product, he could buy it for 100$ and sell it for 103.5$, that would be a margin of just 3.5% and the tariff would be 1.000%

A 20% tariff on wine sounds simple.

But in the U.S., wine moves through a system designed to multiply cost:

Producer → Importer → Distributor → Retailer → You

Each layer adds its margin.

So when the base price goes up, the whole chain compounds it.

Here’s how imported wine moves through the system:

→ Producer sells the wine for $10

→ Importer adds 35% → $13.50

→ Distributor adds 30% → $17.55

→ Retailer adds 40% → $24.57

That’s how a $10 bottle becomes $25—before any tariff.

That’s just the system.

Now let’s add a 20% tariff to that $10 bottle:

→ Producer + tariff = $12

→ Importer markup → $16.20

→ Distributor markup → $21.06

→ Retailer markup → $29.48

The price didn’t rise by just $2.

It rose almost $5—because each step adds margin to a higher base.

That’s the multiplier effect.

This system what put in place after Prohibition.

The government banned direct sales to control alcohol.

They split the chain into tiers to make it easier to tax and track.

It’s not efficient. But it is law.

And that’s just the sales chain.

Even American wine relies on foreign parts.

Most bottles come from China.

Most corks come from Portugal.

Many barrels come from France.

So tariffs raise production costs here too.

A $10 bottle doesn’t become $30 because of a tariff.

It becomes $30 because of the system.

Tariffs just amplify the effect.

If this helped explain wine pricing in America,

please like or repost to help spread the word.

Tomorrow: how we ended up relying on foreign glass.

margins aren’t random, those companies add it to operate there business, Meaning just because the tariffs add additional costs at the beginning, doesn’t mean that importers, retailers etc need more money to operate, as there overall costs stay the same.

5$ wine has a different margin than 15$ wine and will be ordered in different quantities.

Obviously in reality every step in this chain will try to take advantage and therefore at first prices will rise by more than 2$ but after a while capitalism will optimize itself towards it (maybe šŸ˜…)

Folge der Sparmaßnahmen im Bildungssystem nach 2008. bitcoin fixes this šŸ˜…

Replying to Avatar Sai

Let’s stop dancing around it: Billionaires shouldn’t exist.

No one ā€œearnsā€ a billion dollars.

You extract a billion.

From underpaid workers.

From deregulated industries.

From tax havens.

From stolen land, stolen labor, and generational exploitation.

Meanwhile, nearly 700 million people live in extreme poverty on less than $2 a day (source: World Bank). And we’re out here defending the people who could end global hunger with a fraction of their net worth but choose not to?

Let’s be clear:

You don’t get to be a billionaire without creating suffering.

You underpay. You outsource. You lay off. You lobby to kill regulations.

You exploit a system built to protect wealth—not people.

Why do we tolerate it?

Because we’ve been sold a lie: that ā€œsomeday,ā€ we might be rich too.

But statistically, you’re more likely to be struck by lightning than become a billionaire.

This fantasy isn’t harmless—it’s a weapon used to keep you compliant.

There is no moral justification for hoarding more wealth than entire nations while children die from preventable diseases.

Billionaires aren’t a sign of a healthy economy.

They’re a symptom of a broken one.

A society that lets a few live like gods while millions suffer is not free—it’s feudal.

Amazingly, over the last five decades, 79 Trillion dollars has been redistributed to the 1% from the lower 90%.

In the documentary Where To Invade Next, Michael Moore interviews the owners of a textiles plant in Italy and informs them that if they used American business practices, they could drastically increase their profits and asks them why wouldn’t they do that?

Their reply was, they don’t need to become ā€œmore richā€. They are already wealthy enough and bring enough in to enjoy their lives. The woman says clearly, ā€œI’d rather see that go to the employees. To have real relationships with them, to see them happy. It’s amazing to hear people ask how your mother is doing, from a coworker.ā€

The power vacuum is full throttle, and the powers that be have become a snowball rolling down a hill, and we have reached critical mass.

I’m not left, I’m not right.

I’m a person. I think for myself.

It’s obvious that we are heading in a bad direction, and I hope leaders rise and the people stand up for themselves. Speak up, say something, anything is better than complacency and silence.

šŸ”±

1 billion = 1.000 million

Approx 8 million houses in the US are valued 1 million or higher.

One person just has to have 1.000 of these houses, which would be just 0.0006% of the total home supply of the US to be a billionaire.

So my point being, you just can’t grasp large numbers!

100y ago the same person wouldn’t be called billionaire but millionaire (they would be valued approx 10-20 million) but due to inflation the dollar got devalued.

Another example: ones business model just has to be so broad and efficient that it could serve 1 billion customers, and for what ever value they generate, they would get 1$ from each… boom billionaire.

The world economy has changed so much over the past 20 years and people serve not just millions of people ( like old railroads for example) but billions all over the globe.

Your grief isn’t billionaires, it’s corruption, inflation and degeneracy!

Had a similar convo 2 weeks ago. German college was complaining that even in small towns restaurant prices leave a bad taste.

I hinted that maybe the 30% raise in minimum wages hat something to with it.

She replied ā€œbut during covid the Mwst was lowered and then heightened again, so that prices actually didn’t increase at allā€ 🤔 complete contradiction between two sentences šŸ˜‚

She is commercial lead at our company šŸ™ƒ

Looks great. If you wish any Design feedback or something, feel free šŸ‘‹ā˜ŗļø

I know šŸ˜‰ this was more on the ā€œwho owns things, the people actually living there or a 300y descended governmentā€ side of things. But I don’t have a dog in this game so šŸ¤“

Wrong. Greenland belongs to the people living there. They should be able to decide on what or who they want to belong to