@TonyStark @Talkless

#BasicEconomics

Economists are reconsidering how much corporate profits drive inflation : NPR
https://www.npr.org/2023/05/19/1177180972/economists-are-reconsidering-how-much-corporate-profits-drive-inflation#:~:text=Economists%20are%20reconsidering%20how%20much%20corporate%20profits%20drive%20inflation%20In,was%20because%20of%20corporate%20profits.

@Talkless That would make sense if large companies would just raise prices to cover higher costs. But they don’t. They’ve figured out they can raise prices much higher than they need to and people don’t have alternatives. #BasicMath and probably #BasicEconomics

I’m skilled at both.

@TonyStark

"Profits" during #inflation are misleading. It shows "profit" against cheaper inputs.

If you have paid for your inputs (products, materials, etc) $1M before inflation, but during year you see that inputs are getting more and more expensive, you HAVE to rise prices in advace to prepare for upcomming higher invoice for next batch of inputs, because how are you gonna pay $1,2M next time if revenue was only $1,1M (inputs + margin for salaries and other expenses)?

#BasicEconomics