Current inflation is driven by corporation not government policy.....how are record profits possible if the cost of everything has gone up? Why are the prices of these goods higher....is it that the raw material/overhead prices are higher so they pass that on to us to maintain their margins for profit? However if that is the case how are companies making record high profit margins in this economic landscape....
Groundwork Collective crunched Commerce Department data to find shocking greedflation results. But there’s evidence of it in a lot more places.
finance.yahoo.com
Corporate profits drove 53% of inflation during the second and third quarters of 2023 and more than one-third since the start of the pandemic, the report found, analyzing Commerce Department data. That’s a massive jump from the four decades prior to the pandemic, when profits drove just 11% of price growth.
“Businesses were really, really quick, when input costs went up, to pass that on to consumers. [But] had they only passed on those increases, inflation would have been maybe one to three points lower,” Liz Pancotti, a strategic advisor at Groundwork and one of the report’s authors, told
Fortune.
How is this possible given the high inflation.....again if prices went up due to supply constraints and higher prices for raw materials how did the companies manage to also double their profit margins? The answer is they raised prices higher than they had to because they could "blame" inflation. It really is that simple....and they are still doing it now.
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