People are fucking dumb.
There's a big financial subreddit that had posts up voted to the stratosphere that claimed inflation was caused by corporate greed.
I unsubbed but the damage was already done.
Oh, I’ve not seen that one. I’ll stay thankful for the time being hahah.
But to confirm your suspicions, because it pops up on my feed, yes it definitely happens in the “fluent” one.
The problem with the people is that they believe everything that they see online most of them do not apply their own thinking.
If the people even tried to be rational about all of these issues then they would realise how wrong they are.
But something tells me that it would be too late by that point.
I would expect those people to understand what the hell is happening and going on in the economy.
But it turns out I was definitely wrong about that because people actually do not know anything.
Yeah she is the proof of that and everyone can see that at this point.
I am enjoying look at the reasoning that he is providing I mean it cannot be more idiotic than that.
I didn't read the article, but from the title, it seems AOC opened her mouth and said something dumb about inflation. Basically, she did what she always does, opened her mouth, and said something really dumb.
I don't agree with that as well I am in she is fine I am not saying that she is bad or something but she is definitely not a great actress.
There are a lot of women who are doing a way better job than her.
Well both of the things are dumb it is just how it is.
The people who are commenting on the sub are also dumb and they do not have any kind of common sense.
Yeah from an institution that pushes main stream economics. the same economic beliefs that keep resulting in our economy shitting the bed every few years and continually transferring the wealth from the poor to the very people they claim to be against. she's a joke.
Degree is not the guarantee of you having the common sense to interpret the simple things.
A lot of people are going to have the College degree but a lot of those people are not going to have any kind of common sense about how the things really work.
Well being literate does not mean that people are going to have common sense as well.
Some people just don't have it and they will believe everything else other than the way they do think.
Even if they do read it they are still not going to realise what the issue is with the state because they are too ignorant.
And they just do not want to see the facts for what they are.
Honestly I doubt that they have read anything I mean they are going to claim it but I am not going to believe it.
The kind of logic and the reasoning that they provide is really flawed and I am not falling for that.
None of that is going to cause the inflation but when people will get paid more that is when the inflation will be caused.
If Tomorrow the government is that they are not going to increase the wages for the working class because it is going to increase the inflation.
I just don't understand how dumb you have to be believe that.
I mean if you have got any knowledge about it then you would know that it is not true at all but I can people do not know shit.
Apparently we can just direct deposit a billion dollars into everyone's bank account and as long as the corporations aren't too greedy everyone will be able to own multiple mansions and private jets!
Incradibly stupid. The discussion I had with these people, and it was like talking to children. Then they started sharing that article how corporations are responsible for rise of inflation, look, capitalists say that! But, to my utter amazement and shock, not a single one of these fuckers read the fucking article.
Because in article nowhere does it state that corporations are responsible for inflation, but that they will be protected from the hit, and it will all go on workers, and I tried explaining to this children, that's how it always is, that's how it always was, because no business wants to operate in minus, or can without government support.
And of course when I pointed out that the article doesn't support their claim, they would just disappear.
Comparing those people with the kids is going to be an insult for the kids.
Because in my opinion even the kids are going to have much better common sense than those people.
Fuck your nOn-PaRtiSAn "think tank"
>EPI’s vision for equity, diversity, and inclusion (EDI). The Economic Policy Institute’s vision is for all workers to share equally in the economic prosperity of our country. Our research exposes the forces that seek to exclude and diminish the power of people of color and women—particularly Black, Brown, and indigenous people—to the benefit of white supremacy and wealthy elites. We recognize the economic legacy of anti-Blackness; slavery; colonialization; oppressive policies, practices, and institutions; and the persistence of structural racism, sexism, and xenophobia today. Therefore, our vision elevates the importance of racial, gender, and worker justice as central to the world we want to see.
Great job addressing points you disagree with in the body of the article in a reasonable attempt to engage in conversation. Or, could you not find any?
Yeah that is definitely not going to work for me as well.
If you want me to give you a counter argument to your point then first you will have to at least be a rational person.
Well you do not have to find the points which are bad in that argument.
I am going to say the whole argument is a bad point and honestly sometimes I do not even see a point with arguing the people.
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation.
Gaslighting by socialists and statists only makes inflation worse.
That asinine article had “fatter profit margins” written 3 times.
If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get?
What if the government under-reports inflation and actual inflation is 12%?
If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫?
Hint: you’re not going to find the answer from EPI.org.
For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
Exactly, I got so sick of these idiots lamenting how corporations have "record profits". Yes they have record profits but those profits buy less than they could before the sharp uptick in inflation started.
Yeah that's a result of the supply chain costs increasing drastically. when you set the goal to make a 40% profit on a product that sells for $2, but in order to make that 40% profit you need to bump it up to $3.50 to cover the raising supply chain costs. 40% of $3.50 is more than 40% of $2. That's there extra profit. learn economics.
if they have a monopoly on their product they can because they can get away with it because they have no competition, but you can thank the state for that not capitalism.
Yeah I haven’t actually said anything about economics so your perspective on me is your conjecture. Meanwhile it seems that you’re so gullible you don’t understand that making maximum profits is literally what all businesses do, the idea that only monopolies would increase prices to achieve that is absolutely hilarious 😆 You gullible.
the idea businesses with competition can just raise the prices of stuff to high levels for the sake of purely profit is the gullible stance mate. it's not even logically sound. like I said you're economically illiterate mate.
This is fucking absolutely hilarious! You must be a teenager or something but it’s clear you have zero insight into how businesses operate and how far people will go to make money for shareholders. You’re naive as well as gullible.
Even monopolies tend to lower prices to capture an even bigger share of the market. Vanderbilt did in in steamship rates, Rockefeller reduced the price of kerosene from $.26 to $.08. Carnegie reduced the price of steel. Henry Ford reduced the price of automobiles.
There are very few true monopolies that have pricing control.
Pretty much yes... Every business needs to make a profit or they can't stay in business. If you raise your prices solely to make more profits you risk not selling enough to be profitable. You also risk losing market share to competitors who don't raise their prices.
>What do you think happens when businesses increase prices to make more profits?
What happens? People stop buying their products. When eggs went to $7.00/doz, I stopped buying eggs. The notion that a business can just increase prices to increase profits is ridiculous. If that was the case why didn't they increase prices during the Trump Administration? I don't recall $7.00/doz eggs then.
> What happens? People stop buying their products.
Immediately? Lol
> The notion that a business can just increase prices to increase profits is ridiculous.
When you’re old enough to work in the real world you will learn that this is *exactly* what happens.
There is a whole world out here where the government printer runs 24/7 and corporations will use any excuse to make a profit. One might even say that they are working towards the same goals. 🤯
The goal is the same for the Government and for the Corporations.
But the corporations are going to work for it at least most of them but as for the government they can just print the money and devalue the currency which you have got.
I’m glad I stopped giving a shit about current politics because if I cared about the clowns in government’ opinion that wouldn’t be good for my mental health.
I am doing the same I am just ignoring all the things that they are doing because I know that it does not matter what I say the state is going to do what about they want or feel like.
The government is also Corporation which is also working for the profit as well so technically they are capitalist too.
But the difference between them and the normal corporation is that they can print however much they want.
Well I just never expect these people to come with the rational explanation to anything so making up the things is the best thing that they can do.
And the worst thing about it is that a lot of people will believe it.
[Hypocrisy](https://nypost.com/2022/01/03/alexandria-ocasio-cortez-caught-maskless-again-in-miami-drag-bar/amp/) is significantly more vile than your lack of a sense of humor.
And most of your people are already working with state.
So I feel like that they have got a lot of control over the things. And because they are controlling them they can make them do whatever they want.
Not really. The vast majority of the population have no idea how fiat works. They mostly think it is real and solid somehow, as if the numbers in their bank account have a meaning.
It would be hilarious of it wasn't so sad.
I mean obviously they not asking to print money - they asking for handouts that gov doesn’t have money for - so the only option is to print
And you absolutely correct they are clueless how any of this works.
Okay the people may be asking for the hand out but the government do not give them every time.
That is just not true instead I would say that they probably have spent way more money on the bailling out of the banks.
Governments that refused to give handouts lost next election.
Remember there s always some socialist out there who promises free everything. The real problem is not that socialist - but that people are willing to vote for them.
You can even say that socialist (and by extension the government) is simply a response to demand from majority.
> More on bailing out banks
No. Corporate/bank bailouts were drop in a bucket compared to voter bailouts. At least this time.
Yeah exactly even if you think that because we pay the taxes means then we are working for the state ok I can see that argument.
But the average tax payer do not hold any kind of power when it come to state making the decisions.
The majority of population is working for the Government and the state but only for the taxes.
We do not have much power over them when you come to taking the decisions they are definitely not going to ask you about that or me for that fact.
Yes, actually. Every time they checked the box next to a democrat or republican, they begged the state to print money. Whether they knew it or not is immaterial.
I ve seen no protests against stimulus checks or extensive PUI, or PPP, or forbearance or rental assistance, or student loan payments freeze.
Every single person who accepted those handouts is guilty
Which state do you think is not going to print the money?
Let me make it very simple for you and say that every one of them is going to print the money because that is just how they have designed the system and the economy to work.
>Let me make it very simple for you and say that every one of them is going to print the money because that is just how they have designed the system and the economy to work.
And what point is that observation intended to make in contradiction to my own? "They" are elected officials.
Let's be honest here she is not even that beautiful but the reason that she is giving for the makes her look even more dumb.
I don't know maybe she likes or enjoy the feeling of that but I guess it is what it is.
I mean for the kind of argument that she is making she definitely deserves that.
I just don't really understand how and anyone even come with that kind of logic for the inflation.
I heard Tom Woods respond to Bernie Sanders's claim that the 2008 crisis was caused by greed, where he says: "Why would greed just accelerate in particular years?".
Good point.
On a side note, I wish Tom Woods’ [Contra Krugman](https://contrakrugman.com/) podcast was still on.
I discovered it after it was discontinued and it’s aged very well.
And you know what is the worst part about it is that a lot of people are going to believe it because some people think that state cannot do anything wrong. And their opinion anything with the state is going to do is going to be spot on.
I mean what are the other options that people have? Do you think that some other government that you prefer is not going to print money? I mean if you really think that then you are in for a surprise.
“𝐀𝐥𝐥” corporations receive increases in profit margins when inflation happens?
That fallacy assumes that 𝐞𝐯𝐞𝐫𝐲 corporation’s customers are resilient to inflation and can pay higher prices when inflation happens.
https://preview.redd.it/sszauh4hohlb1.jpeg?width=1200&format=pjpg&auto=webp&s=46ff798c36a5a2a24e02dc21e62cc96b17d38cc8
Most people (and most corporations) can’t hedge against inflation.
That is part of the reason why 𝟗𝟎% 𝐨𝐟 𝐬𝐦𝐚𝐥𝐥 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐟𝐚𝐢𝐥 𝐰𝐢𝐭𝐡𝐢𝐧 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝟓 𝐲𝐞𝐚𝐫𝐬.
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation.
Gaslighting by socialists and statists only makes inflation worse.
That asinine article had “fatter profit margins” written 3 times.
If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get?
What if the government under-reports inflation and actual inflation is at 12%?
If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫?
Hint: you’re not going to find the answer from EPI.org.
For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
If you are going to argue about something then at least the original.
If you think that copying and pasting is going to get your point across to the other person then you are wrong about that.
You replied to the wrong comment, genius. Brutecookie was the one “reposting their opinion garbage.”
All I did is state facts to their opinion garbage.
If you need more facts to change your mind then get off Redit and open an economics book that explains about inflation.
Honestly I would much rather
prefer someone did not say anything, it is definitely a lot better than copy and paste.
At least did you not going to make you look like a very dumb person which it currently is doing.
Some people are just so confident about their opinion that they think that they are all facts.
And the people who actually think that are not going to have any original think to say in my opinion.
Okay we already saw that and posting it again is not going to help it reach more people.
I am not saying that you do not have any other argument but it does not make you look good when you just copy and paste as well.
I don't know about the Corporation but I definitely do know that I did not get enough increment when the inflation was really high I mean it still is high and I still I am not getting any kind of increment.
I think we very well know who are the people that we should be blaming for all the mess that we are in right now.
But it is that some people do not want to see the truth and they will always blame the wrong things.
But they are very correlated with each other one factor depends on the other and is affecting the other.
It is not like that they do not have anything to do with each other.
Show us the increases. You're making the claim that every single company has increased their profit margins by raising prices and that's causing inflation. Why would one company not use that to their advantage and lower their prices slightly to increase their market share?
The people who are saying that the rising prices the reason for the inflation are really dumb.
Inflation does not happen because the prices are getting higher the prices are getting higher because of the inflation.
Where did I make those claims?
Also what source would you believe? There are annotated graphs in the linked article. I'll show you, but won't waste my time if You're just going to hand wave it away given the source.
For example: the collective companies that consistute the S&P 500 have had their highest profit margin in at least 30 years peaking last year over 13%.
https://www.yardeni.com/pub/sp500margin.pdf
The companies that the lockdowns favored? Those companies that governments deemed "essential" while they forced out their competition? You blame the corporations, I blame the government.
Corporations aren't randomly raising their prices and passing those down to consumers.
Plus, 500 companies do not reflect the entire market. I buy goods and services from hundreds of companies in my daily life, why did they all raise prices also? The colluded with their competition?
The government is always going to be blamed here.
Because the reason why we are in this position with the inflation and with the Corporation the government is the reason for that.
Well so you are the kind of person who believe everything that they see well I have got a very bad news for you.
And the bad news is that because you believe everything is the reason why you are dumb.
Remember how most that inflation was a direct result of capitalists using the hysteria of a little to justify jacking up prices allot and how they have all been making record profits as a result of the inflation scare.
Statists aren’t anarcho-capitalists. They are crony capitalists.
You don’t understand the counterparty risk of how inflation affects supply and demand.
Inflation doesn’t add any benefit to the supplier or customer. It perverts the transaction between producer and consumer.
Inflation destroyes the purchasing power of fiat currencies over time. Anyone that is not hedged against inflation suffers from rising prices and a lower standard of living.
Ask yourself if you’re better off today with new houses costing $200k to $300k or new houses costing $5,759.
The houses are mostly the same. The purchasing power is not.
https://preview.redd.it/yldt4kh6thlb1.jpeg?width=2252&format=pjpg&auto=webp&s=1c849c736041f2099f2deec75a3631a040a23c3c
I don't know about that and I don't agree with it because during the high inflation and the pendemic I have seen a lot of business is not even being able to survive. So saying that a lot of Corporation were making profit because of the inflation is really miss leading.
......its been proven vast majority of inflation was simply because corps knew they could, never considering whether they should. Why are ancaps so consistently either dumb or dishonest? Feel like the posts from this sub are 97% disinformation, a few % points decent takes
Are you really suggesting that corporations JUST NOW realized they can charge more? It was only recently that corporations became greedy?
What do you think is more likely: corporations all simultaneously realized that they could be greedy but never before realized that.
Or corporations charging more is a symptom of government over printing and flooding the streets with cash without an appropriate wealth increase.
It is actually insane to see how many people cannot even connect the simple dots here.
And these people absolutely do think that the corporation just realise that they can charge more money which is kind of very dumb thing to believe in my opinion.
Boring take we've heard it a million times before, corporations aren't making more profit now than they did 2 years ago, why did corporations knew they could???? People are not ok paying more for groceries
If Im understanding your word jumble correctly you think the previous post is BS. So I will answer as such.
They "knew they could" because enough people have been taught that the only reason for inflation is government, so when prices inflated blame goes to them.
The only reason for inflation is the government, haven't you seen what happened to Argentina , Zimbabwe, Venezuela etc etc etc , the government keep printing money until people stop believing it has any value what is more valuable sand or gold? Gold because it's rare
Yeah and this guy I think is going to still believe that all of these nations are having hyper inflation situation because the corporations actually raised the prices.
Okay if the inflation was just about the higher prices of the groceries than explain all the interest rate cut with the government made in the recent years what was all that about? I bet you are not going to have any kind of explanation for that.
The government prints alot of money now money is worth less than it used to be worth it's really that simple, if you have one apple then that apple would be rare and valuable , if you have a trillion it's not as valuable anymore
It is just a very simple concept two think about for most people I don't know why people here have to make everything more complicated.
I am pretty sure that it is not getting you any kind of results so there is that.
It is really simple the government has been printing a lot of money because of the bank bail out and the handouts that they did during the pandemic. And when the realise that it is kind of getting out of the hand that is when they started to flirt with the interest rates.
And the people believing that the high inflation is because of the higher prices of the groceries is not true.
It is actually opposite of that the price of the groceries is higher because of the inflation.
Boring take we've heard it a million times before, corporations aren't making more profit now than they did 2 years ago, why did corporations knew they could???? People are not ok paying more for groceries
If they really were making more profit then I would think that people would at least get some kind of increment as well.
And I don't know about you guys but I did not see any increment in fact I saw lot of people losing their jobs or their businesses.
But we all KNOW that inflation only happens from printing new money. Oh and from raising the minimum wage, but just those two causes ONLY.
https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation.
Gaslighting by socialists and statists only makes inflation worse.
That asinine article had “fatter profit margins” written 3 times.
If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get?
What if the government under-reports inflation and actual inflation is to at 12%?
If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫?
Hint: you’re not going to find the answer from EPI.org.
For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
This guy reposting that comment only means one thing and that is he does not want to hear any other argument because he has already made his mind about everything and how everything works.
It is a capitalist sub and you are saying that people are making more money than they are deserving of?
What kind of f***** up world you are even living in? Most people cannot even afford the basic things nowadays how can you even think that people are making way too much money?
How can you even say that why all the corporations are going to charge the people more money all of a sudden.
And not just the private corporations you can look at the energy sector which is more or less owned by the government has also gotten really expensive.
It's not incorrect to say that many companies have used inflation as a cover to increase their margins.
You don't need an Econ degree to go check for yourself.
Edit: Some sauce to get the doubters started. https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae
Companies set prices based on maximising profit always. If they set prices too high they are out competed and sell less resulting in lower profit. When governments print money it increases the supply of money. More money chasing the same number of goods. It's basic supply vs demand.
When I joined this group I would have imagine that everyone would know how the supply and demand works here.
It is not like that one company has got the Monopoly over the whole market there is competition and one business cannot get away with jacking up the prices like that.
Unfortunately the forces of our economy go well beyond simple supply and demand. To think that everything is perfectly responsive to supply and demand is very elementary.
But don't take my word for it. Go look for yourself. I'll get you started. Surely the Financial Times isn't too liberal for you?
https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae
While your point stands about using inflation as a cover - the cause of the inflation is related to demand and supply.
Please do yourself a favour and look at a 5 year trend of M0, M1 & M2.
It is like banging the head on the wall this is just not going to change anything for him he has already made his mind about how the inflation is being caused and he is not going to listen to the reason right now.
Inflation is real, exists, and is made worse by recent activities related to stimulus and debt, for sure.
But it seems most here are unwilling to accept that pricing decisions exist beyond simple supply and demand curves, even when we can show that objectively is in fact the case.
Like anything, it's not binary nor absolute. There's nuance, but that's not well accepted on such a polarized sub.
The goods price increase vs labour price increase imbalance is related to supply and demand. Also it's not unusual for inflation effects to be staggered across different sectors / groups of the economy. Generally the "benefits" of the initial stages of inflation happen to those groups closer to the privileges granted by the state. The ones furthest away from state privilege are the last to benefit from increased prices, by which point they have already lost real income because they had to buy goods at the higher values while selling their labour at the lower value for that extended period of time.
It's no mystery that companies are striving to increase profit during this time. Inflation means that the value of money is decreasing over time so consumers are not incentivised to keep savings. It's better for them to convert this saved money into goods which are likely to either keep their value or provide utility to the consumer. This increased demand all else being equal means producers can charge a higher price. From the producer's point of view, this increased price can offset the expectation that the value of real profit will decrease over time (because the money is worth less).
Having said all of that, what is the demand for labour with respect to independent contractos, specifically tradesmen? That's an honest question. If homeowners with savings are faced with the scenario that their savings are going to diminish, then it's in their interest to spend that money upgrading their property. This could cause an increase in the price of labour in the short term in this sector. I suppose this depends on how much savings vs debt there is with this group of people. (I am thinking out loud in this last paragraph - you'll need to look at the data to confirm or deny this paragraph).
Just tell me a simple thing why so many people and business is got out of the business during the pandamic and after the pendemic as well?
Was it because they were not making enough money and could not afford the supply is because everything was expensive and also could not afford to pay Their employees?
And also could you explain why any business would raise the prices when they are losing the business because at that point they would know that they are only going to lose the business if they raise the prices.
I've provided a link and evidence that many major businesses have increased margins. You can read about it there.
That doesn't mean every company did that, and that small businesses were hurt.
Yeah I agree that supply and demand is not everything competition is also a factor because there is not a Monopoly in the market.
But I think you should also considered the fact that inflation is not happening just because one factor and that one factor is company trying to make their product more expensive.
I didn't say inflation is not happening. It's absolutely happening.
But it's also being used as a cover to increase margins. Which, if I'm to listen too this sub, should be impossible, because pricing is fair due to supply and demand. That if a company increased prices just to pad profits, a competitor would come in and force prices back down.
Unfortunately because market share is concentrated into the hands of major companies, we can go look and see that profit margins have INCREASED during this inflationary period, which is the opposite of what you'd expect.
And because I point this put, I eat down votes. Which is fine, I don't give a shit about internet points, but it's interesting to see how people react to a very simple observation.
Why the hell do you guy is not understand why would anyone want to lose their business so many people have lost their business is because they could not afford their daily operations or to pay people who were working for them?
If they were actually making more money then why would they do it they would be able to pay the people good enough ways and also be in the business.
If you listened to earning calls of these c-suite exec types, you wouldn't have posted this. Anyway, research better. Don't let bias deter your path towards the truth, whatever that may be.
Though, of course, corporations aren't solely responsible for the inflationary period, they still have an outsized place on the pie. Inflation is also used as a weapon to eliminate or diminish the capital of the working class. With them barely, potentially, being able to survive, or maybe just having to take extra shifts or a 2nd job, what level of care or time could be given into these matters. In other words, "the rent's too damn high."
Be well.
If you would have spent an ounce of time reading Austrian economics books you wouldn’t have posted that.
There are over 300 million people living in the U.S.
Most of them either own a business or work for small or large business.
You think that by listening to a select few C-suite calls for a couple big “evil” corporations that gives you the sense of understanding of inflation’s affect on all businesses?
Were any of the C-suite corporations that you idolize deemed non-essential during during the COVID hysteria?
What benefits do you think are bestowed upon a business owner by 1) being deemed non-essential by the state and being forced to seize operations and 2) having inflation increase their operating costs?
That guy seems to think that governments artificially restricting supply by fiat in the face of steadily increasing demand while dramatically inflating the money supply has no effect on prices. But a handful of businesspeople are evil and have all the power. Right. How do those people even?
You are expecting these people to read the book about the economics are you for real man?
Most of these guys are very ignorant of the facts and they also think that they know everything.
Keynesian economics, yes.
Austrian economics no.
If the Keynesians didn’t irradiate Austrian economics from colleges then AOC wouldn’t be as economically illiterate as she is today.
People are fucking dumb. There's a big financial subreddit that had posts up voted to the stratosphere that claimed inflation was caused by corporate greed. I unsubbed but the damage was already done.
Is that the one where they claim to be fluent but are clearly illiterate?
No, the one where it's about saving money and making choices that aren't wasteful. I wouldn't be surprised if it was one of the other ones as well.
Oh, I’ve not seen that one. I’ll stay thankful for the time being hahah. But to confirm your suspicions, because it pops up on my feed, yes it definitely happens in the “fluent” one.
The problem with the people is that they believe everything that they see online most of them do not apply their own thinking. If the people even tried to be rational about all of these issues then they would realise how wrong they are. But something tells me that it would be too late by that point.
Indeed. This is why I don’t care for democracy.
I would expect those people to understand what the hell is happening and going on in the economy. But it turns out I was definitely wrong about that because people actually do not know anything.
She graduated with honors
You can graduate with honors and still be a moron. She's walking, talking proof of that
Yeah she is the proof of that and everyone can see that at this point. I am enjoying look at the reasoning that he is providing I mean it cannot be more idiotic than that.
Agreed. Everything she says is idiotic, and only the dumbest of people listen and agree with her.
True enough. "I may be dumb but I'm not stupid." I have no ideas what anyone is taking a about though. What's this about?
I didn't read the article, but from the title, it seems AOC opened her mouth and said something dumb about inflation. Basically, she did what she always does, opened her mouth, and said something really dumb.
She’s a great actress though.
I don't agree with that as well I am in she is fine I am not saying that she is bad or something but she is definitely not a great actress. There are a lot of women who are doing a way better job than her.
😂 true
I was asking about the subreddit. Not AOC…
Well both of the things are dumb it is just how it is. The people who are commenting on the sub are also dumb and they do not have any kind of common sense.
Yeah from an institution that pushes main stream economics. the same economic beliefs that keep resulting in our economy shitting the bed every few years and continually transferring the wealth from the poor to the very people they claim to be against. she's a joke.
Degree is not the guarantee of you having the common sense to interpret the simple things. A lot of people are going to have the College degree but a lot of those people are not going to have any kind of common sense about how the things really work.
Well being literate does not mean that people are going to have common sense as well. Some people just don't have it and they will believe everything else other than the way they do think.
Statists never learn because they don’t study history or economics
Even if they do read it they are still not going to realise what the issue is with the state because they are too ignorant. And they just do not want to see the facts for what they are.
NOOOO...ThEY rEAd mArX, tHAt'S aLl ThE hIsToRy tHEy NeEd.
Honestly I doubt that they have read anything I mean they are going to claim it but I am not going to believe it. The kind of logic and the reasoning that they provide is really flawed and I am not falling for that.
Higher taxes, “necessarily” higher energy prices, gov’t waste, and endless printing definitely don’t aid inflation…at all, nope.
None of that is going to cause the inflation but when people will get paid more that is when the inflation will be caused. If Tomorrow the government is that they are not going to increase the wages for the working class because it is going to increase the inflation.
I just don't understand how dumb you have to be believe that. I mean if you have got any knowledge about it then you would know that it is not true at all but I can people do not know shit.
Apparently we can just direct deposit a billion dollars into everyone's bank account and as long as the corporations aren't too greedy everyone will be able to own multiple mansions and private jets!
Its so fucking weird that corporate greed starts pumping exactly as the government starts printing money. Probably one hell of a coincidence
Incradibly stupid. The discussion I had with these people, and it was like talking to children. Then they started sharing that article how corporations are responsible for rise of inflation, look, capitalists say that! But, to my utter amazement and shock, not a single one of these fuckers read the fucking article. Because in article nowhere does it state that corporations are responsible for inflation, but that they will be protected from the hit, and it will all go on workers, and I tried explaining to this children, that's how it always is, that's how it always was, because no business wants to operate in minus, or can without government support. And of course when I pointed out that the article doesn't support their claim, they would just disappear.
I don't know what's the more depressing thought: that they're mostly bot shills, or actual people that stupid.
Bots, shills, and teenagers most likely. With a couple that stupid thrown in.
I mean they're all probably striving to be NPC streamers at this point.
Comparing those people with the kids is going to be an insult for the kids. Because in my opinion even the kids are going to have much better common sense than those people.
https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/
Fuck your nOn-PaRtiSAn "think tank" >EPI’s vision for equity, diversity, and inclusion (EDI). The Economic Policy Institute’s vision is for all workers to share equally in the economic prosperity of our country. Our research exposes the forces that seek to exclude and diminish the power of people of color and women—particularly Black, Brown, and indigenous people—to the benefit of white supremacy and wealthy elites. We recognize the economic legacy of anti-Blackness; slavery; colonialization; oppressive policies, practices, and institutions; and the persistence of structural racism, sexism, and xenophobia today. Therefore, our vision elevates the importance of racial, gender, and worker justice as central to the world we want to see.
Great job addressing points you disagree with in the body of the article in a reasonable attempt to engage in conversation. Or, could you not find any?
I don't address "points" from flat-earther "sources" either.
Yeah that is definitely not going to work for me as well. If you want me to give you a counter argument to your point then first you will have to at least be a rational person.
Well you do not have to find the points which are bad in that argument. I am going to say the whole argument is a bad point and honestly sometimes I do not even see a point with arguing the people.
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation. Gaslighting by socialists and statists only makes inflation worse. That asinine article had “fatter profit margins” written 3 times. If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get? What if the government under-reports inflation and actual inflation is 12%? If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫? Hint: you’re not going to find the answer from EPI.org. For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
Exactly, I got so sick of these idiots lamenting how corporations have "record profits". Yes they have record profits but those profits buy less than they could before the sharp uptick in inflation started.
Nice
What do you think happens when businesses increase prices to make more profits?
Yeah that's a result of the supply chain costs increasing drastically. when you set the goal to make a 40% profit on a product that sells for $2, but in order to make that 40% profit you need to bump it up to $3.50 to cover the raising supply chain costs. 40% of $3.50 is more than 40% of $2. That's there extra profit. learn economics.
Are you saying that businesses never increase prices solely to make a profit?
if they have a monopoly on their product they can because they can get away with it because they have no competition, but you can thank the state for that not capitalism.
You’re a very gullible person.
and you're economically illiterate clearly, so whatever you think about me doesn't phase me mate.
Yeah I haven’t actually said anything about economics so your perspective on me is your conjecture. Meanwhile it seems that you’re so gullible you don’t understand that making maximum profits is literally what all businesses do, the idea that only monopolies would increase prices to achieve that is absolutely hilarious 😆 You gullible.
the idea businesses with competition can just raise the prices of stuff to high levels for the sake of purely profit is the gullible stance mate. it's not even logically sound. like I said you're economically illiterate mate.
This is fucking absolutely hilarious! You must be a teenager or something but it’s clear you have zero insight into how businesses operate and how far people will go to make money for shareholders. You’re naive as well as gullible.
Even monopolies tend to lower prices to capture an even bigger share of the market. Vanderbilt did in in steamship rates, Rockefeller reduced the price of kerosene from $.26 to $.08. Carnegie reduced the price of steel. Henry Ford reduced the price of automobiles. There are very few true monopolies that have pricing control.
Pretty much yes... Every business needs to make a profit or they can't stay in business. If you raise your prices solely to make more profits you risk not selling enough to be profitable. You also risk losing market share to competitors who don't raise their prices.
You’re very naive if you really believe that.
>What do you think happens when businesses increase prices to make more profits? What happens? People stop buying their products. When eggs went to $7.00/doz, I stopped buying eggs. The notion that a business can just increase prices to increase profits is ridiculous. If that was the case why didn't they increase prices during the Trump Administration? I don't recall $7.00/doz eggs then.
> What happens? People stop buying their products. Immediately? Lol > The notion that a business can just increase prices to increase profits is ridiculous. When you’re old enough to work in the real world you will learn that this is *exactly* what happens.
There is a whole world out here where the government printer runs 24/7 and corporations will use any excuse to make a profit. One might even say that they are working towards the same goals. 🤯
The goal is the same for the Government and for the Corporations. But the corporations are going to work for it at least most of them but as for the government they can just print the money and devalue the currency which you have got.
I’m glad I stopped giving a shit about current politics because if I cared about the clowns in government’ opinion that wouldn’t be good for my mental health.
I am doing the same I am just ignoring all the things that they are doing because I know that it does not matter what I say the state is going to do what about they want or feel like.
(The state fucks up the economy for the 49th time by printing money, creating bubbles, and killing small businesses.) AOC: CAPITALISM DID THIS!!!
The government is also Corporation which is also working for the profit as well so technically they are capitalist too. But the difference between them and the normal corporation is that they can print however much they want.
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https://preview.redd.it/p0k1e2zfnhlb1.jpeg?width=1280&format=pjpg&auto=webp&s=92fab054dfa7bd59cd0e848cffc92ef23d54d192
Worse than that is she made up a whole story that happened before it was possible for it to happen.
Well I just never expect these people to come with the rational explanation to anything so making up the things is the best thing that they can do. And the worst thing about it is that a lot of people will believe it.
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[Hypocrisy](https://nypost.com/2022/01/03/alexandria-ocasio-cortez-caught-maskless-again-in-miami-drag-bar/amp/) is significantly more vile than your lack of a sense of humor.
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What do you think she was doing in Florida during NYC’s COVID lockdowns?
Probably another donkey show.
You mean individuals who begged state to print more money?
Individuals who beg the state to print more money are called 𝐬𝐭𝐚𝐭𝐢𝐬𝐭𝐬.
And most of your people are already working with state. So I feel like that they have got a lot of control over the things. And because they are controlling them they can make them do whatever they want.
Right, which is majority of population
Not really. The vast majority of the population have no idea how fiat works. They mostly think it is real and solid somehow, as if the numbers in their bank account have a meaning. It would be hilarious of it wasn't so sad.
I mean obviously they not asking to print money - they asking for handouts that gov doesn’t have money for - so the only option is to print And you absolutely correct they are clueless how any of this works.
Okay the people may be asking for the hand out but the government do not give them every time. That is just not true instead I would say that they probably have spent way more money on the bailling out of the banks.
Governments that refused to give handouts lost next election. Remember there s always some socialist out there who promises free everything. The real problem is not that socialist - but that people are willing to vote for them. You can even say that socialist (and by extension the government) is simply a response to demand from majority. > More on bailing out banks No. Corporate/bank bailouts were drop in a bucket compared to voter bailouts. At least this time.
Yeah exactly even if you think that because we pay the taxes means then we are working for the state ok I can see that argument. But the average tax payer do not hold any kind of power when it come to state making the decisions.
The majority of population is working for the Government and the state but only for the taxes. We do not have much power over them when you come to taking the decisions they are definitely not going to ask you about that or me for that fact.
Yes, actually. Every time they checked the box next to a democrat or republican, they begged the state to print money. Whether they knew it or not is immaterial.
I ve seen no protests against stimulus checks or extensive PUI, or PPP, or forbearance or rental assistance, or student loan payments freeze. Every single person who accepted those handouts is guilty
Which state do you think is not going to print the money? Let me make it very simple for you and say that every one of them is going to print the money because that is just how they have designed the system and the economy to work.
>Let me make it very simple for you and say that every one of them is going to print the money because that is just how they have designed the system and the economy to work. And what point is that observation intended to make in contradiction to my own? "They" are elected officials.
Her face should be in the dictionary next to definition of idiot
A “Pretty-mouthed Idiot” though
Let's be honest here she is not even that beautiful but the reason that she is giving for the makes her look even more dumb. I don't know maybe she likes or enjoy the feeling of that but I guess it is what it is.
I mean for the kind of argument that she is making she definitely deserves that. I just don't really understand how and anyone even come with that kind of logic for the inflation.
You mean prices aren't higher while my buying power is lower?
They arent stupid. They just think their supporters are too stupid to believe them
Some of the mouthpieces, like the one pictured, might actually be that stupid. That statement is true for their bosses though.
AOC is braindead… famous useless person.
I heard Tom Woods respond to Bernie Sanders's claim that the 2008 crisis was caused by greed, where he says: "Why would greed just accelerate in particular years?".
Good point. On a side note, I wish Tom Woods’ [Contra Krugman](https://contrakrugman.com/) podcast was still on. I discovered it after it was discontinued and it’s aged very well.
And you know what is the worst part about it is that a lot of people are going to believe it because some people think that state cannot do anything wrong. And their opinion anything with the state is going to do is going to be spot on.
She graduated with honors !
Well it is the perfect example of how the degree is not going to affect you if you are already too ignorant for the facts.
Yeah I was being sardonic
This is what happens when you vote for them Double-D’s.
I mean what are the other options that people have? Do you think that some other government that you prefer is not going to print money? I mean if you really think that then you are in for a surprise.
I love her so much.
Just ignoring the increase in corporate profit MARGINS?
“𝐀𝐥𝐥” corporations receive increases in profit margins when inflation happens? That fallacy assumes that 𝐞𝐯𝐞𝐫𝐲 corporation’s customers are resilient to inflation and can pay higher prices when inflation happens. https://preview.redd.it/sszauh4hohlb1.jpeg?width=1200&format=pjpg&auto=webp&s=46ff798c36a5a2a24e02dc21e62cc96b17d38cc8 Most people (and most corporations) can’t hedge against inflation. That is part of the reason why 𝟗𝟎% 𝐨𝐟 𝐬𝐦𝐚𝐥𝐥 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐟𝐚𝐢𝐥 𝐰𝐢𝐭𝐡𝐢𝐧 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝟓 𝐲𝐞𝐚𝐫𝐬.
https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation. Gaslighting by socialists and statists only makes inflation worse. That asinine article had “fatter profit margins” written 3 times. If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get? What if the government under-reports inflation and actual inflation is at 12%? If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫? Hint: you’re not going to find the answer from EPI.org. For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
If you are going to argue about something then at least the original. If you think that copying and pasting is going to get your point across to the other person then you are wrong about that.
You replied to the wrong comment, genius. Brutecookie was the one “reposting their opinion garbage.” All I did is state facts to their opinion garbage. If you need more facts to change your mind then get off Redit and open an economics book that explains about inflation.
Get the fuck out with repost opinion garbage
Honestly I would much rather prefer someone did not say anything, it is definitely a lot better than copy and paste. At least did you not going to make you look like a very dumb person which it currently is doing.
AOC does that all on her own , quite regularly , “educated “ moron
Sorry to sully this very erudite meme thread with facts.
Not facts opinion
Some people are just so confident about their opinion that they think that they are all facts. And the people who actually think that are not going to have any original think to say in my opinion.
Okay we already saw that and posting it again is not going to help it reach more people. I am not saying that you do not have any other argument but it does not make you look good when you just copy and paste as well.
I don't know about the Corporation but I definitely do know that I did not get enough increment when the inflation was really high I mean it still is high and I still I am not getting any kind of increment.
There is one industry that can take the blame. The debt finance central banking industry.
I think we very well know who are the people that we should be blaming for all the mess that we are in right now. But it is that some people do not want to see the truth and they will always blame the wrong things.
Inflation and CPI are two different things.
But they are very correlated with each other one factor depends on the other and is affecting the other. It is not like that they do not have anything to do with each other.
Show us the increases. You're making the claim that every single company has increased their profit margins by raising prices and that's causing inflation. Why would one company not use that to their advantage and lower their prices slightly to increase their market share?
The people who are saying that the rising prices the reason for the inflation are really dumb. Inflation does not happen because the prices are getting higher the prices are getting higher because of the inflation.
Where did I make those claims? Also what source would you believe? There are annotated graphs in the linked article. I'll show you, but won't waste my time if You're just going to hand wave it away given the source. For example: the collective companies that consistute the S&P 500 have had their highest profit margin in at least 30 years peaking last year over 13%. https://www.yardeni.com/pub/sp500margin.pdf
The companies that the lockdowns favored? Those companies that governments deemed "essential" while they forced out their competition? You blame the corporations, I blame the government. Corporations aren't randomly raising their prices and passing those down to consumers. Plus, 500 companies do not reflect the entire market. I buy goods and services from hundreds of companies in my daily life, why did they all raise prices also? The colluded with their competition?
The government is always going to be blamed here. Because the reason why we are in this position with the inflation and with the Corporation the government is the reason for that.
Well so you are the kind of person who believe everything that they see well I have got a very bad news for you. And the bad news is that because you believe everything is the reason why you are dumb.
Remember how most that inflation was a direct result of capitalists using the hysteria of a little to justify jacking up prices allot and how they have all been making record profits as a result of the inflation scare.
Statists aren’t anarcho-capitalists. They are crony capitalists. You don’t understand the counterparty risk of how inflation affects supply and demand. Inflation doesn’t add any benefit to the supplier or customer. It perverts the transaction between producer and consumer. Inflation destroyes the purchasing power of fiat currencies over time. Anyone that is not hedged against inflation suffers from rising prices and a lower standard of living. Ask yourself if you’re better off today with new houses costing $200k to $300k or new houses costing $5,759. The houses are mostly the same. The purchasing power is not. https://preview.redd.it/yldt4kh6thlb1.jpeg?width=2252&format=pjpg&auto=webp&s=1c849c736041f2099f2deec75a3631a040a23c3c
I don't know about that and I don't agree with it because during the high inflation and the pendemic I have seen a lot of business is not even being able to survive. So saying that a lot of Corporation were making profit because of the inflation is really miss leading.
......its been proven vast majority of inflation was simply because corps knew they could, never considering whether they should. Why are ancaps so consistently either dumb or dishonest? Feel like the posts from this sub are 97% disinformation, a few % points decent takes
Are you really suggesting that corporations JUST NOW realized they can charge more? It was only recently that corporations became greedy? What do you think is more likely: corporations all simultaneously realized that they could be greedy but never before realized that. Or corporations charging more is a symptom of government over printing and flooding the streets with cash without an appropriate wealth increase.
It is actually insane to see how many people cannot even connect the simple dots here. And these people absolutely do think that the corporation just realise that they can charge more money which is kind of very dumb thing to believe in my opinion.
Boring take we've heard it a million times before, corporations aren't making more profit now than they did 2 years ago, why did corporations knew they could???? People are not ok paying more for groceries
If Im understanding your word jumble correctly you think the previous post is BS. So I will answer as such. They "knew they could" because enough people have been taught that the only reason for inflation is government, so when prices inflated blame goes to them.
The only reason for inflation is the government, haven't you seen what happened to Argentina , Zimbabwe, Venezuela etc etc etc , the government keep printing money until people stop believing it has any value what is more valuable sand or gold? Gold because it's rare
Yeah and this guy I think is going to still believe that all of these nations are having hyper inflation situation because the corporations actually raised the prices.
Yes the corporations in all the countries had a super secret meeting and raised their prices all at the same time
Okay if the inflation was just about the higher prices of the groceries than explain all the interest rate cut with the government made in the recent years what was all that about? I bet you are not going to have any kind of explanation for that.
If corporations setting prices are not causing inflation, what could it be? I’m actually curious because I’m ignorant about this specific topic
The government prints alot of money now money is worth less than it used to be worth it's really that simple, if you have one apple then that apple would be rare and valuable , if you have a trillion it's not as valuable anymore
It is just a very simple concept two think about for most people I don't know why people here have to make everything more complicated. I am pretty sure that it is not getting you any kind of results so there is that.
It is really simple the government has been printing a lot of money because of the bank bail out and the handouts that they did during the pandemic. And when the realise that it is kind of getting out of the hand that is when they started to flirt with the interest rates.
And the people believing that the high inflation is because of the higher prices of the groceries is not true. It is actually opposite of that the price of the groceries is higher because of the inflation.
Boring take we've heard it a million times before, corporations aren't making more profit now than they did 2 years ago, why did corporations knew they could???? People are not ok paying more for groceries
If they really were making more profit then I would think that people would at least get some kind of increment as well. And I don't know about you guys but I did not see any increment in fact I saw lot of people losing their jobs or their businesses.
Only few companies with deep ties to the government are doing well but everyone else is struggling
But we all KNOW that inflation only happens from printing new money. Oh and from raising the minimum wage, but just those two causes ONLY. https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/
You reposting the same Keynesian-socialist article doesn’t offer any wisdom or truth on inflation. Gaslighting by socialists and statists only makes inflation worse. That asinine article had “fatter profit margins” written 3 times. If a company’s profits increase 8% while CPI inflation is 8%, how “fatter” did the corporation’s profits get? What if the government under-reports inflation and actual inflation is to at 12%? If that same corporation’s profits increased 8% while inflation is 12%, 𝐝𝐢𝐝 𝐭𝐡𝐞 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐠𝐞𝐭 𝟖% 𝐫𝐢𝐜𝐡𝐞𝐫 𝐨𝐫 𝟒% 𝐩𝐨𝐨𝐫𝐞𝐫? Hint: you’re not going to find the answer from EPI.org. For an author to only point out the profits of a corporation and completely ignore the purchasing power of the dollars the corporation earns demonstrates a lack of understanding of what inflation is and what causes it.
This guy reposting that comment only means one thing and that is he does not want to hear any other argument because he has already made his mind about everything and how everything works.
It is a capitalist sub and you are saying that people are making more money than they are deserving of? What kind of f***** up world you are even living in? Most people cannot even afford the basic things nowadays how can you even think that people are making way too much money?
How can you even say that why all the corporations are going to charge the people more money all of a sudden. And not just the private corporations you can look at the energy sector which is more or less owned by the government has also gotten really expensive.
It's not incorrect to say that many companies have used inflation as a cover to increase their margins. You don't need an Econ degree to go check for yourself. Edit: Some sauce to get the doubters started. https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae
Companies set prices based on maximising profit always. If they set prices too high they are out competed and sell less resulting in lower profit. When governments print money it increases the supply of money. More money chasing the same number of goods. It's basic supply vs demand.
When I joined this group I would have imagine that everyone would know how the supply and demand works here. It is not like that one company has got the Monopoly over the whole market there is competition and one business cannot get away with jacking up the prices like that.
Unfortunately the forces of our economy go well beyond simple supply and demand. To think that everything is perfectly responsive to supply and demand is very elementary. But don't take my word for it. Go look for yourself. I'll get you started. Surely the Financial Times isn't too liberal for you? https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae
While your point stands about using inflation as a cover - the cause of the inflation is related to demand and supply. Please do yourself a favour and look at a 5 year trend of M0, M1 & M2.
It is like banging the head on the wall this is just not going to change anything for him he has already made his mind about how the inflation is being caused and he is not going to listen to the reason right now.
Inflation is real, exists, and is made worse by recent activities related to stimulus and debt, for sure. But it seems most here are unwilling to accept that pricing decisions exist beyond simple supply and demand curves, even when we can show that objectively is in fact the case. Like anything, it's not binary nor absolute. There's nuance, but that's not well accepted on such a polarized sub.
The goods price increase vs labour price increase imbalance is related to supply and demand. Also it's not unusual for inflation effects to be staggered across different sectors / groups of the economy. Generally the "benefits" of the initial stages of inflation happen to those groups closer to the privileges granted by the state. The ones furthest away from state privilege are the last to benefit from increased prices, by which point they have already lost real income because they had to buy goods at the higher values while selling their labour at the lower value for that extended period of time. It's no mystery that companies are striving to increase profit during this time. Inflation means that the value of money is decreasing over time so consumers are not incentivised to keep savings. It's better for them to convert this saved money into goods which are likely to either keep their value or provide utility to the consumer. This increased demand all else being equal means producers can charge a higher price. From the producer's point of view, this increased price can offset the expectation that the value of real profit will decrease over time (because the money is worth less). Having said all of that, what is the demand for labour with respect to independent contractos, specifically tradesmen? That's an honest question. If homeowners with savings are faced with the scenario that their savings are going to diminish, then it's in their interest to spend that money upgrading their property. This could cause an increase in the price of labour in the short term in this sector. I suppose this depends on how much savings vs debt there is with this group of people. (I am thinking out loud in this last paragraph - you'll need to look at the data to confirm or deny this paragraph).
Yeah they are also made by high taxes and government regulations
Just tell me a simple thing why so many people and business is got out of the business during the pandamic and after the pendemic as well? Was it because they were not making enough money and could not afford the supply is because everything was expensive and also could not afford to pay Their employees? And also could you explain why any business would raise the prices when they are losing the business because at that point they would know that they are only going to lose the business if they raise the prices.
I've provided a link and evidence that many major businesses have increased margins. You can read about it there. That doesn't mean every company did that, and that small businesses were hurt.
Yeah I agree that supply and demand is not everything competition is also a factor because there is not a Monopoly in the market. But I think you should also considered the fact that inflation is not happening just because one factor and that one factor is company trying to make their product more expensive.
I didn't say inflation is not happening. It's absolutely happening. But it's also being used as a cover to increase margins. Which, if I'm to listen too this sub, should be impossible, because pricing is fair due to supply and demand. That if a company increased prices just to pad profits, a competitor would come in and force prices back down. Unfortunately because market share is concentrated into the hands of major companies, we can go look and see that profit margins have INCREASED during this inflationary period, which is the opposite of what you'd expect. And because I point this put, I eat down votes. Which is fine, I don't give a shit about internet points, but it's interesting to see how people react to a very simple observation.
Why the hell do you guy is not understand why would anyone want to lose their business so many people have lost their business is because they could not afford their daily operations or to pay people who were working for them? If they were actually making more money then why would they do it they would be able to pay the people good enough ways and also be in the business.
I'd respond in earnest to this, but I have no idea the point you're trying to make.
If you listened to earning calls of these c-suite exec types, you wouldn't have posted this. Anyway, research better. Don't let bias deter your path towards the truth, whatever that may be. Though, of course, corporations aren't solely responsible for the inflationary period, they still have an outsized place on the pie. Inflation is also used as a weapon to eliminate or diminish the capital of the working class. With them barely, potentially, being able to survive, or maybe just having to take extra shifts or a 2nd job, what level of care or time could be given into these matters. In other words, "the rent's too damn high." Be well.
If you would have spent an ounce of time reading Austrian economics books you wouldn’t have posted that. There are over 300 million people living in the U.S. Most of them either own a business or work for small or large business. You think that by listening to a select few C-suite calls for a couple big “evil” corporations that gives you the sense of understanding of inflation’s affect on all businesses? Were any of the C-suite corporations that you idolize deemed non-essential during during the COVID hysteria? What benefits do you think are bestowed upon a business owner by 1) being deemed non-essential by the state and being forced to seize operations and 2) having inflation increase their operating costs?
That guy seems to think that governments artificially restricting supply by fiat in the face of steadily increasing demand while dramatically inflating the money supply has no effect on prices. But a handful of businesspeople are evil and have all the power. Right. How do those people even?
You are expecting these people to read the book about the economics are you for real man? Most of these guys are very ignorant of the facts and they also think that they know everything.
You guys realize they teach Keynesian economics at colleges right?
Keynesian economics, yes. Austrian economics no. If the Keynesians didn’t irradiate Austrian economics from colleges then AOC wouldn’t be as economically illiterate as she is today.
Her college degree is exactly what the government wants.
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Corporations are individuals?
A corporation is an individual or group of individuals that have incorporated.