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.
Why are corporations only greedy when President Biden is in office? Why weren't they greedy when President Obama or President Trump served?
Do you think it has anything to do with the massive government spending of the Covid-19 stimulus and the massive spending of Pelosi-Schumer-Trump-Biden group?
Simple as going from having $5,000 in your checking account to $10,000. Too many dollars chasing too few goods.
Thomas Sowell: There are no solutions, just trade-offs.
koobookie wrote: Answer your own questions, Fred. Do a little research outside of your right wing bubble.
I have a degree in economics so I have done the research more than the opinion piece you post. How much economics education that reporter had? Three hours?
And I get much more of my new from the Denver Post and New York Times than you do. Read the Denver Post every day.
Thomas Sowell: There are no solutions, just trade-offs.
You have a degree in economics, daily read the New York Times, but don't read Forbes?
Well then, tell me what is the cause of inflation. The article from Forbes states :
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.
That really doesn't sound like an "opinion piece" to me.
Inflation has come down significantly from its peak over the past year, yet prices remain high for American consumers. As supply chain snarls have receded and the economy has stabilized, businesses continue to pad their bottom lines, rather than passing these savings on to consumers.
Then there's always the Commerce Department, which provided the data for those two articles. I'm sure you can google that to find the data.
I'm not an economist, nor do I have an economics degree, but it sure seems like corporate profits are impacting inflation more than anything else.
