Janel Comeaugrocery store chains: we set record profits this year
retail chains: we've never made so much money
energy companies: we just posted our best quarter on record
news article: who is to blame for inflation? you peasants wanting wages, probably
JoeChip@VeryBadLlama
A subject you will never hear discussed in Econ 101: the profit-price spiral.
A subject you will never hear discussed in Econ 101: the profit-price spiral.
🇨🇦 CowMan 🇪🇺 🇺🇦 🇲🇽@JoeChip @VeryBadLlama keep in mind, the dollars are worth less. Record profits are expected in an inflationary scenario, but doesn't necessarily mean anything...
Marc "ACAB" Godin@quietmarc @JoeChip @VeryBadLlama outcome. Like if your selling $10 widgets for $11 before, with a 10% markup and $1 profit - but now inflation is running 10%/yr, the next year you can expect to be selling widgets which cost $11 now to make, plus your same 10% markup, would put the price at $12.10, so a $1.10 profit.
Your profits are up 10%, but actually due to the inflation, that purchasing power of that $1.10 is the equivalent of $0.99 from the previous year, so no better off.