Profit margins of US companies have reached levels not seen since the aftermath of WWII

[Celerity]

Unchecked corporate pricing power is a factor in US inflation

https://www.ft.com/content/151cb429-d024-4d5c-9edf-5b4a2b104a66



There is a strong correlation between the rising share of corporate profits in gross domestic product and the sharp price rises in the US after the Covid pandemic, according to a paper published by the University of Massachusetts.

Having made windfall profits on the back of commodity price fluctuations and supply bottlenecks, large companies have been emboldened to raise prices further to increase profit margins.

They found that there was little evidence that the models used to explain the inflation of the 1970s — such as excess aggregate demand, money supply expansion or increased wage costs that prompted a spiral — applied to this recent rise. Covid-19 price rises are predominantly a sellers’ inflation, they say. Where cost increases are being experienced by all their competitors, companies have felt safe to pass them on in the expectation of an “implicit agreement” that rivals will do the same.

[Kid Berwyn]

1. Kick for Socioeconomic Justice

[Emile]

2. +1

[MissMillie]

3. link w/o paywall

https://archive.is/DhKkn



Because it's another example of how "tricke-down" is a farce.

[Emile]

4. +1 US inflation is caused by corporate pricing power (Predatory Capitalism).

[dalton99a]

5. +1

[dalton99a]

6. Inflation, my ass

The food industry is a prime example. The never ending price increases at the grocery store are obscene

[Initech]

8. Gas too. And concert tickets.

The gas industry is getting away with "refinery problems" (sure, right ) which is leading to higher prices at the pump, while they're reporting their highest profits ever. Seriously, how much fucking profit does one need?

[Initech]

7. Absolute insanity. We really need to tax billionaires and mega corporations.

[lpbk2713]

9. This time around the top execs get much more by ratio ...

than the hourly paid employees.

And it's those lower paid employees who actually generate the
profit. Capitalists think they have died and gone to heaven.

[crickets]

10. 👆👆

Higher prices = $chaching!$ for many CEOs.