I don't understand why everyone hates the rich. Without them who would...*checks notes*...trash the economy repeatedly with no consequences?
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Tell me you dont understand how economies work without telling me you dont understand.
@freemo @geekysteven The common leftie line is that companies are unnecessarily inflating prices so that they can make record profits. I can’t deny that they are making record profits but I suspect that this isn’t the only reason why they’re raising their prices.
@freemo @geekysteven Are they entirely wrong? All I know is that while companies are making record profits, gas prices have been rising for most of #JoeBiden’s presidency, so that makes it more expensive to transport goods, and therefore raises the prices for those goods. I would presume.
Mostly wrong. Inflation isnt caused by a desire for profits and cant cause that in and of itself. Where they show a hint of truth is it **can** cause inflation in the scenario you have a monopoly. I have mentioned before we need strong monopoly enforcement.
In fact I already mentioned the inflation was about to happen right before it happened. Anyone who understands economic models knew this was coming and we knew exactly why, and it isnt the large companies.
We had the entire economy shut down, we were about to have an economic crash. We traded an economic crash for inflation by engaging in Quantitative Easing. Anything other than QE as an excuse for why it is happening is severely disconnected with the reality.
@freemo @geekysteven So are record profits a side effect of inflation?
@mrman @geekysteven @freemo I had assumed so, if companies want to have the same margins as a percentage of costs, but I didn’t have all the facts to back up that theory
With inflation, if there are no other factors or economic issues, then wage/salary increases along with cost of things. The end resultis that companies make more in dollars and cents, and charge more, but people make more income by an equal portion.
If you make x2 the amount but everything costs x2 the amount are you really making record profits? We usually adjust for inflation for exactly this reason.
