By Douglas E. French
Jim Beam has been making whiskey for a long time, through thick and thin. But the Trump tariffs have shut down the venerable distillery.
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By Douglas E. French
Jim Beam has been making whiskey for a long time, through thick and thin. But the Trump tariffs have shut down the venerable distillery.
I have been noticing premium napa wine prices have been falling and was theorizing it was tariff related. For context I picked up a bottle of Silver Oak (Alexander) for $65 for Christmas dinner, normally that runs about $85-90.
I think this will be good time to stock up on whiskey / wine.
That wouldn't be the expected direction of price change from tariffs. If the substitutes become more expensive, demand will shift to the Napa wine, driving it's price up.
It might be that they're getting hammered by reciprocal tariffs from other nations. That would reduce foreign demand and reduce the domestic price.
Not if they had huge foreign markets that dried up
True, I was just trying to think about tariffs specific effects.
As a slight aside, one of the rules in economics is to avoid relying on preference changes as an explanation for anything, even though we know that preferences do change and there are effects. That's because we can't observe preferences and changing preferences can potentially explain anything.
The whole field of econometrics was essentially developed to help us distinguish changes caused by observable phenomena vs. unobservable phenomena like preference changes.
Exactly. When Napa wines only effective market is now domestic there is much more supply relative to domestic demand.
I wonder if it's just the tariffs. Been reading that younger people don't drink as much as previous generations.
That’s true but I also think wine is relatively more popular amongst alcoholic beverages than it used to be.
wonder how much lebron & friends contributed to that, or were they just riding the trend
My sense is that they were riding the wave