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<v Speaker 1>Let's say, good morning too. Someone who knows how a

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<v Speaker 1>lot about money and how those tariffs might affect this.

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<v Speaker 1>It's the host of how to Money on KFI, Joel

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<v Speaker 1>Larsguard Morning, Joel Morning Amy. So one in five Americans

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<v Speaker 1>are giving into doom spending. What is it?

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<v Speaker 2>Oh? Well, I think in large part because of the

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<v Speaker 2>threats of tariffs and now the actual implementation of tariffs.

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<v Speaker 2>A lot of American people have said I should probably

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<v Speaker 2>spend more because I think prices are going up, and

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<v Speaker 2>I get that impulse, but they're essentially saying things are

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<v Speaker 2>going to spiral out of control and because of that,

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<v Speaker 2>I should probably stockpile things now, maybe take the costco mentality,

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<v Speaker 2>but amp it up on steroids or something like that.

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<v Speaker 2>And I guess I'm just worried. I don't think that's

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<v Speaker 2>really actually a good path forward for people. The tariff question, certainly,

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<v Speaker 2>it's been kind of a yo yo thing, and now

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<v Speaker 2>they're actually being implemented. And like you said, the countries

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<v Speaker 2>that were implementing tariffs against are implementing tariffs of their own.

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<v Speaker 2>And the truest reality in economics is that tariffs do

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<v Speaker 2>lead to higher costs. I will say this though the

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<v Speaker 2>first time around, companies had ways of kind of getting

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<v Speaker 2>around those tariffs, whether it was going through a third

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<v Speaker 2>party country or sourcing some materials elsewhere. That I think

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<v Speaker 2>these tariffs are going to be more impactful. But I

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<v Speaker 2>don't want people to go out there and buy stuff

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<v Speaker 2>that maybe they don't actually have the money for, putting

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<v Speaker 2>it on credit cards and stuff like that. I don't

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<v Speaker 2>want people to let fear change their money habits.

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<v Speaker 1>Yeah. In fact, you bring that up, and I was

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<v Speaker 1>going to ask you. I was driving around the other

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<v Speaker 1>day and I was like, Oh, I need to ask

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<v Speaker 1>Joel if he thinks a lot of people are going

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<v Speaker 1>to go and buy cars because of the tariffs.

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<v Speaker 2>I mean, I do think that is one of the places,

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<v Speaker 2>especially as much ink has been spilled about rising car prices,

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<v Speaker 2>and that's we've already experienced that with just inflation in general, right,

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<v Speaker 2>but tariffs could impact car prices even more. And part

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<v Speaker 2>of the reason that tariffs are being implemented it's a

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<v Speaker 2>protectionary instinct to protect I think the American car manufacturers.

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<v Speaker 2>But because cars are essentially built in multiple countries and

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<v Speaker 2>the parts are flying back and forth across borders, the

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<v Speaker 2>tariffs could increase the price of car parts, increase the

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<v Speaker 2>price of cars altogether. And so someone saying, you know what,

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<v Speaker 2>I guess I should buy a car before prices go up.

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<v Speaker 2>It depends on when were you playing on buying a

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<v Speaker 2>car anyway. If you're like I was thinking about buying

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<v Speaker 2>one in like twenty twenty six or twenty seven, I

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<v Speaker 2>should go ahead and front load that purchase even though

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<v Speaker 2>I don't have the cash on hand to buy it,

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<v Speaker 2>I would say, no, that's not why. It's like, pay

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<v Speaker 2>a little more for car parts to repair your car now,

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<v Speaker 2>and don't go ahead and buy a new car. But

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<v Speaker 2>if you're like, no, I was already gonna buy one

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<v Speaker 2>in like May or June, I don't see the harm

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<v Speaker 2>in making that purchase a little bit sooner, although I

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<v Speaker 2>don't know how much you're gonna save. I mean, some

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<v Speaker 2>of the estimates about how much more cars will cost

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<v Speaker 2>because of tariffs are really a few percentage points higher.

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<v Speaker 2>When you talk about the price of a car that

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<v Speaker 2>could be on thy fifteen hundred dollars, that's a lot

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<v Speaker 2>of money. So I don't I'm not against the idea

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<v Speaker 2>of frontloading that purchase a little but just don't look

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<v Speaker 2>so far out and let that doom and gloom color

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<v Speaker 2>your purchases too much.

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<v Speaker 1>Okay, I saw that Starbucks said it's not going to

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<v Speaker 1>raise its prices because of the tariffs. They said, we'll

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<v Speaker 1>eat it.

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<v Speaker 2>Well, that's interesting too, because when you look at what's

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<v Speaker 2>happened with coffee prices, coffee prices have are like a

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<v Speaker 2>fifty year high. So yeah, maybe Starbucks doesn't have to

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<v Speaker 2>raise prices right now. But at some point tariffs become

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<v Speaker 2>a reality that every company has to deal with and

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<v Speaker 2>they either have to find ways to cut back on

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<v Speaker 2>their costs or they have to pass on some of

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<v Speaker 2>the increased pricing onto consumers. And I do think there's

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<v Speaker 2>probably going to be a little bit of both, right

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<v Speaker 2>because companies don't want to shock all of US Americans,

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<v Speaker 2>but tariffs are going to be shocking if they stay

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<v Speaker 2>around for any in a meaningful way, for any meaningful

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<v Speaker 2>length time.

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<v Speaker 1>Okay, and then Joe, one last quick question because we're

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<v Speaker 1>almost out of time. I hate that this is the

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<v Speaker 1>quickest hour in radio. Doge dividends. They've been talking about it,

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<v Speaker 1>but you're saying they're not going to materialize.

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<v Speaker 2>Don't hold your breath.

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<v Speaker 1>What are you talking about specifically.

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<v Speaker 2>So there were headlines last week talking about how, oh

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<v Speaker 2>the Department of Government efficiency. It's look at all the

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<v Speaker 2>money it's going to save us Americans. And I do

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<v Speaker 2>think most Americans can agree that, you know, at least

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<v Speaker 2>cutting a little bit of government waste, fraud, and abuse,

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<v Speaker 2>if that's actually what's happening, is a good thing. And

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<v Speaker 2>the way Doge is going about it that's more debatable.

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<v Speaker 2>But this sort of massive Doge refund to Americans, like

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<v Speaker 2>five thousand dollars per household is kind of what's been touted.

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<v Speaker 2>There's no way that's going to happen. That's essentially saying

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<v Speaker 2>if Doge cuts two trillion dollars in federal spending, that's

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<v Speaker 2>how much households would receive if they got a portion

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<v Speaker 2>of those savings send out and rebate checks to Americans.

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<v Speaker 2>There's just no way Doge is going to be able

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<v Speaker 2>to claw back anything close to that amount of money.

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<v Speaker 2>So if you're saying, oh, another stimmy check, I'm going

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<v Speaker 2>to get a massive government rebate check in the mail

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<v Speaker 2>because Doge is doing such a great job, I would

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<v Speaker 2>just say I don't think that's going to happen. In fact,

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<v Speaker 2>I would. I would bet a lot of money that

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<v Speaker 2>it's not gonna happen. Even a five hundred dollars check

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<v Speaker 2>is just pie in the sky because like, really, when

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<v Speaker 2>it comes down to it, it's entitlements that need to

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<v Speaker 2>be cut to realize significant savings, and the Trump administration

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<v Speaker 2>has said, no way, we're going to cut anything in

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<v Speaker 2>regards to you know, the biggest line items that the

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<v Speaker 2>government has.

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<v Speaker 1>Okay, and guess who's going to talk more about money

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<v Speaker 1>this weekend noon to two on Sunday. Yeah, it's Joel Larsgard.

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<v Speaker 1>The show is How to Money. It's right here on

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<v Speaker 1>KFI Sundays noon to two. You can also follow Joel

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<v Speaker 1>at How to Money. Joel, Thank you, Joel.

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<v Speaker 2>Thanks Amy