A census of Costco carts on Thursday revealed little fear. Tariffs could go as fast as they’re coming, and our columnist is not stuffing his pantry.
I went to Costco on a tariff run, and did not stock up on anything.
It was tempting. Mark Cuban was on social media telling people it was not a “bad idea” to stock up on consumables as President Trump’s trade war unfolded. I love beating the system as much as the next person — it’s my literal beat in journalism.
But let’s really think this one through for a minute.
First of all, these tariffs may not persist at anything like the amounts currently in the headlines. For stocking up to make sense, you have to assume that price increases will be significant and last for at least a medium amount of time.
But let’s assume that both these things happen. Say you have a $1,000 grocery bill each month, and it somehow goes to $1,500 by Memorial Day. While predicting a 50 percent spike feels like a stretch, that extra $500 would be real money.
But you also need to have real money — extra real money — to lay a bunch of things away in your residence. Many people don’t, and going into debt to buy extras of everything will probably erase any savings.
Mr. Cuban, via email, said he had made buying shampoo, soap and razor blades in multiples work somehow, even when he wasn’t wealthy. “I started doing it in college when I read the book ‘The Only Investment Guide You’ll Ever Need,’” he said. “When you can save money by buying more than one of something, that’s a guaranteed return.”
It can be, if you use it. Most of what we eat, however, is perishable. Many of us waste some of what we purchase. Buying more could mean wasting more food — and more money.