Should big corporate profits take the blame for inflation?
US corporate profit margins has reached its highest since 1950, suggesting companies have been able to keep profit margins high by cutting cost and passing higher costs along to consumers.
After-tax profits as a share of gross value added for non-financial corporations, improved in the second quarter to 15.5% -- the most since 1950, according to Commerce Department figures published Thursday.
After-tax profits as a share of gross value added for non-financial corporations, improved in the second quarter to 15.5% -- the most since 1950, according to Commerce Department figures published Thursday.
With household budgets squeezed by the rising cost of living, some firms have been able to offset slip in demand by charging more to the customers they've retained. We've seen corporate watchdogs accusing retailers like $The Kroger(KR.US$ and $CVS Health(CVS.US$ of pandemic profiteering or wartime profiteering.
As prices for goods are on the rise, there has been a debate over whether price-gouging companies carry a share of the blame for high inflation. Some economists say that historically elevated profit margins mean there's room for businesses to accommodate worker demands for better pay without setting off a wage-price spiral.
Mooers, what do you think? Let's discuss![]()
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As prices for goods are on the rise, there has been a debate over whether price-gouging companies carry a share of the blame for high inflation. Some economists say that historically elevated profit margins mean there's room for businesses to accommodate worker demands for better pay without setting off a wage-price spiral.
Mooers, what do you think? Let's discuss
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Mr Trecherous : The FED is the reason for inflation 100%
JustSurface Mr Trecherous: money printer go brrrrrrrrrr
Flaxfield Mr Trecherous: Your graph shows that the inflation/deflation was normal for 50 years after the fed was created.
Your graph also shows that inflation took off in 1971-ish.
1971 is when the US stopped using the gold standard.
Revelation 6 JustSurface: The FED says, “Bend over.”
Ixy The Cat : The Fed is beholden to banks and corporations. Its unprecedented money printing and cheap money has buoyed the stock markets but inflation is coming back to haunt the Fed, who are in denial to the severity of inflation.
決然的凱特 : It's hard to see how much it goes up.
Revelation 6 決然的凱特: When you live so far away from the problem in a fantasy world like Washington D.C., it’s hard to clearly see them.
Mr Trecherous :
Red__Bull : Congress needs to stop spending like drunken sailors