Did you know that 54% of inflation in the US is due to profit taking?

[goaded]

In previous recoveries the excess profits represented 11%.

Yes.

No.

I don't understand the concept of a yes/no question

Updates

+1 y

Table 1.15 from the National Income and Product Accounts, US Bureau of Economic Analysis. Via www.epi.org/.../

"Normal and recent contributions to growth in unit prices in the nonfinancial corporate sector
2020 Q2–2021 Q4 1979–2019 average
Corporate profits 53.9% 11.4%
Nonlabor input costs 38.3% 26.8%
Unit labor costs 7.9% 61.8%"

[Hispanic-Cool-Guy]

Yes, I found about it and not surprised. You should see the profits oil companies have made this past year and half.

Outrageously high profits.

[OddBeMe]

If only the top knew to share more of the pie…or do we need a French-like guillotine party on Wall Street?

[OddBeMe]

Twer the best of times and twer the worst of times. So get killin.

[Amy10223]

Yes. Many people don't know that the very wealthy are not really affected by taxes when everyone else is taxed--and the reason for this is that they have their money in places where they make money inactively, while they sleep--and are not taxed. It's invested and protected from being taxed although they can take hits when the economy calls for it.

[joeldalton]

bahahaha good one. Inflation is due to the government printing dollars. More dollars means they're worth less. Supply and Demand. If it wasn't, then the fed wouldn't be raising interest rates. Raising interest rates makes those dollars harder to get, decreasing the supply.

[goaded]

Nope. Corporations are raising prices well beyond the amount needed to cover their increased costs.

[ArtieWhitefox]

That which they call profits are coming from nothing. Money comes from nothing. Devils want to be self-deceived. The things that God made are something. The Unseen Father wants to control us. Money is controling people right now. Money is an ever-tightening noose. People don't see that untill it is to late.

[joeldalton]

So then under Trump, when inflation was low... what happened then? They weren't greedy? You should really have been supporting Trump, then... since he kept corporate greed in check.

[goaded]

I know you're incapable of understanding, well, anything, but here's the truth for anyone else who's interested: When interest rates and inflation were low, there was no cover for corporations to unreasonably increase prices, now both are higher worldwide because of the pandemic and war in Ukraine, they have cover and they are taking advantage of it.

You (not really you, people who understand facts) might also like to look into the report on how Trump's administration interfered with the pandemic response in ways that killed Americans so Trump wouldn't look bad.
s3.documentcloud.org/.../...coronavirus-crisis.pdf

[joeldalton]

lmao. And they're using this "cover" in collusion. That's your assertion?

[goaded]

Who said collusion? They all think they can get away with it, like the riots in England in 2011. https://en.wikipedia.org/wiki/2011_England_riots

[joeldalton]

Because, geez why do you need an econ 101 lesson? If you and I sell lemonade. You're a big greedy fat cat so you're charging $5 a glass to cover your inflated $3 in expenses plus greeeeeedy profit. You sell 100 glasses of lemonade a week. I come along and decide, I'm only going to charge $4, cause I'm not some big greedy greedster. All of a sudden, you don't sell 100 glasses, because people want my $4 non-greedy lemonade. Your choices are then to cut your price to $4 to match me, or continually lose sales to me.

[goaded]

And that's exactly what German supermarkets are doing. Fighting back against it. In the US, presumably, they're just celebrating their higher profits and higher inflation.

From a site you probably think is infallible: www.breitbart.com/.../
"German shoppers are increasingly finding empty shelves where their favourite Kellogg's cereal, Mars chocolate bar or rice brand used to be, as supermarkets square off against major food companies over price hikes.

"Dear customers: we are sorry to inform you that we can't currently offer all the products of our supplier Mars GmbH," reads a note in a sparsely stocked aisle at an Edeka supermarket in central Berlin.

With German inflation running at a record 10 percent, supermarket giants are pushing back against what they see as unreasonable price increases by some of the world's best-known brands.

Food multinationals argue that their manufacturing costs have risen on the back of soaring energy and transport costs, in part because of the war in Ukraine.

But retailers in Europe's top economy say they are protecting customers' purchasing power at a difficult time, and that price hikes of up to 30 percent in some cases are overblown.

"Many international brands are trying to take advantage of inflation to charge excessive prices in order to increase their profits," an Edeka spokesman told AFP, calling Mars's price demands "unjustified"."

[joeldalton]

lol, so you're back to accusing them of collusion.

[goaded]

WTF is wrong with you? It doesn't take collusion for multiple people or organisations to decide to do the same thing at the same time when they see an opportunity.

[joeldalton]

yes it does. Otherwise coke would undercut pepsi. You really don't understand how economics works.

[Friendlybro79]

He gave corporations, not us, a tax cut which was supposed to trickle down to it's employees and it did not. Some companies gave a little one time bonus that was just to save face. He encouraged corporate greed by lowering their tax burden without any stipulations to help employees... you know the ones that bring in the profits

[joeldalton]

@Friendlybro79 I'll give you one guess as to who pays the taxes levied on a company. Here's your chance to show the world your big brain.

[goaded]

" yes it does. Otherwise coke would undercut pepsi. You really don't understand how economics works. "
You are insane. They can't reduce prices below cost, obviously. They might increase prices over their competitors, pretending it's a better product. Their competitors might do the same. They will both do that until customers start to notice.

[joeldalton]

You clearly have zero understanding of how business works.

[goaded]

Clearly, you have no idea of how reality works. Businesses can't reduce prices below cost, obviously. They might increase prices over their competitors, pretending it's a better product. Their competitors might do the same. They will both do that until customers start to notice. No collusion needed.

[joeldalton]

I never said at any point they would reduce prices below cost. You made that assertion. And unfortunately, that's also not a blanketly true statement. Google the term "loss leader".

[goaded]

The completely obvious point is that fuel dealers are likely to follow the herd/flock/whatever. It's still not necessarily collusion.

[joeldalton]

the margins on fuel are razor thin. That's not where gas stations make their money. But you tried.

[goaded]

Are we talking about fuel now, and not everything else? That's a surprise! (Distraction.)

[joeldalton]

moron, you started talking about fuel to distract that you lost this debate.

[goaded]

That's literally what you just did, as anyone can see.

[joeldalton]

you said "The completely obvious point is that fuel dealers are likely to follow the herd/flock/whatever. It's still not necessarily collusion."

tard

[goaded]

You're actually right for a change. I'm having a conversation about fuel elsewhere and got confused. It still doesn't mean that corporations can't look at what the others are doing and unreasonably raise prices without actually colluding with each other.

[joeldalton]

so you're a liar, right? And let's go with your example... have you ever driven down a road and seen an intersection with 2 or more gas stations on it? Has one ever had cheaper fuel than the other? Is that one more crowded? Yes or no?

[goaded]

Nope. A liar is someone like you who says things that aren't true and know it. Corporations can look at what the others are doing and unreasonably raise prices without actually colluding with each other.

[joeldalton]

so let's try this again, let's see if you'll deflect or be honest. you're 0-1 right now. have you ever driven down a road and seen an intersection with 2 or more gas stations on it? Has one ever had cheaper fuel than the other? Is that one more crowded? Yes or no?

[goaded]

Why do you think your question will distract from the fact that 54% of inflation is due to price gauging?

[joeldalton]

so you deflect again,. EVery time you get backed into a corner because you know you're full of shit..

[Agagagagaga]

He’s gotta deflect man, go easy on him. He’s busy fighting on the front in the Ukrainian Resistance. In fact I bet he’s reading this from his fox-hole.

[goaded]

I'm not deflecting when I try to drag the conversation back to the subject of the question: 54% of inflation comes from profit taking. Also it still doesn't mean that corporations (or "gas stations") can't look at what the others are doing and unreasonably raise prices without actually colluding with each other. As it happens, there's a road near me where there are two petrol stations, one of which, the independent one, always has their price at least a cent lower than the Esso station. Neither seems to go bust.

[joeldalton]

So the cheaper one doesn’t match prices. You just said they do.

[goaded]

" So the cheaper one doesn’t match prices. You just said they do. "
I didn't say that (just like I didn't say corporations are colluding), and their prices follow each other, they just don't exactly match.

[joeldalton]

yeah, couldn't be because their costs are the same. by the way did you ever figure out why they weren't greedy under the presidents prior to Biden?

[goaded]

Of course they were greedy before. What they haven't had for decades is an unusual level of inflation they could blame for their price hikes. Have you worked out how so many corporations are making record profits this year? (Hint: look at the question.)

[joeldalton]

So odd, isn't it, that with these "record profits" you're lying about the stock market is in the shitter.

[goaded]

Sweet that you think the stock market is rational.

"Data from the U. S. Commerce Department shows that corporate profit margins are the largest they've been in 70 years."

[joeldalton]

Oh, so despite a record profit, people don't want to buy stock in a company that is going gangbusters... got it.

[goaded]

There are other reasons for the stock market to fluctuate, including fears of higher interest rates and high inflation, which, remember, is largely caused by corporate profit taking at the highest rates since the 1950s.

[joeldalton]

the inflation caused by the government printing fiat currency to send to Ukraine.

[goaded]

Nope, but a nice attempt to go off on a tangent. Every country in the world has high inflation. In the US, 54% of the inflation is due to corporations putting their prices up far higher than required by increased costs.

[joeldalton]

so just all companies around the world decided all at the same time to raise prices... lol. YOu really don't have the first clue about economics

[goaded]

Who said "around the world" or that that's the only reason for inflation? There are many reasons for inflation, but more than half of it is corporate greed, in the US at least.

I wonder if you can ever be honest.

[joeldalton]

you quoted the leftist house of representatives. You can't even find an honest source. Try again later, liar.

[goaded]

www.businessinsider.com/companies-pocket-largest-profits-in-70-years-amid-inflation-complaints-2021-12

[joeldalton]

sourced from the same corrupt government, lol.

[goaded]

You really don't like facts, do you.

[joeldalton]

You like lying, don't you.

[goaded]

FFS.

[888theGreat]

nope, see a company must have a profit or they have to lay off people. They are also responsible to the board of directors. A business is not a non profit business or charity. You liberals think if a company does better than break even it should be punished. Salary and wages, oil prices, taxes , gov't spending, shipping, and raw materials cause inflation. Weather can contribute also. Size of Government is a huge inflation factor.

[goaded]

No, that's the point. Increases in all the things you mention would lead to less than half the inflation you're seeing, the rest comes from profit taking. These corporations are making record profits, making unnecessary price increases.

[888theGreat]

says the liberal , they also must keep stock holders happy. They also have a President threatening to take the industry over , so they must have bigger profits do to uncertainty. Trump had $2 a gallon gas because he allowed total production.

[goaded]

Ignoring the as hominem, and the lie that the President is threatening to take anything over, Trump had $2 gas because there was a pandemic and no-one was driving anywhere. www.gasbuddy.com/go/2020-gas-prices-year-in-review "March saw the full impact of COVID-19. Much of the United States went into a complete lockdown, causing gas prices to fall from $2.41/gal on March 1 to $1.97/gal on March 31, 2020. No one drove to work. No one drove to school. A truly unprecedented drop in gasoline demand occurred for the first time in our nation’s history."

[ArtieWhitefox]

That which they call profits are coming from nothing. Money comes from nothing. Devils want to be self-deceived. The things that God made are something. The Unseen Father wants to control us. Money is controling people right now. Money is an ever-tightening noose. People don't see that untill it is to later.

[HighValue]

Not true. It is because of the higher fuel/transportation costs that Biden directly caused. Part of it in CA is caused by extra taxes and regulations from Newsom and the CA democrat legislator, just like shutting down CA refineries so oil has to be transported out of CA then refined, then transported back in.

[goaded]

It is true, they took account of increased costs when making the determination.

I'd like to see more information about refineries, though, apparently all but one are working full speed?

[HighValue]

False and many things you have said in the past on here were false liberal propaganda for years. I am surprised I am not blocked by you, or maybe it was only my other old account years ago that you blocked back when I would research and post links to evidence to disprove your arguments and your response back then was to have it removed and blocked me like a few others on here did that like to spread lies.

[goaded]

Oh, OK, you're not going to bother engaging with facts, just bullshit. And I've only blocked one (really annoying) person for less than a week in 6 years,

[RangerBlue22]

Provide nonpartisan sources to prove this please.

[goaded]

Table 1.15 from the National Income and Product Accounts, US Bureau of Economic Analysis. Via www.epi.org/.../

"Normal and recent contributions to growth in unit prices in the nonfinancial corporate sector
2020 Q2–2021 Q4 1979–2019 average
Corporate profits 53.9% 11.4%
Nonlabor input costs 38.3% 26.8%
Unit labor costs 7.9% 61.8%"

[exitseven]

Why csn't Biden just admit he caused most of it when he gutted oil production in the US and spent a big pile of money we didn;t have,

[goaded]

Because he's not about to lie about it.

[TroyDT2]

What does "excess" profits even mean? Sounds like Centralized-Economy Speak.

[goaded]

And that sounds like deflection. It means the difference between the price rise necessary because of increased costs (plant, wages), and the actual difference in price.

[Friendlybro79]

It means more for everyone but the worker. It means as they profit from the pandemic and all the excuses they will forever use to keep prices high and not increase wage growth

[goaded]

@Friendlybro79 Exatly.

[TroyDT2]

Deflection? No, if there are "excess" profits then naturally competitors will seize the advantage to undercut the competition.. It is shocking how little you all understand about basic economics.

[goaded]

Except they all see the chance to do the same thing. Like the 2011 riots in England when people realised that the police couldn't catch them all.

[Anonymous]

No, I did not know that. Do you have a non-leftist source?

[goaded]

Because right-wing sources are just as likely to report these facts?

oversight.house.gov/.../power-and-profiteering-how-certain-industries-hiked-prices-fleeced-consumers
www.alternet.org/2022/10/corporate-price-hikes/

[Opinion Owner]

Unless its leftist hogwash, you would think news sites would cover it.

[goaded]

News sites would, but propaganda sites won't. Fortunately, one of my links was directly to the government: oversight.house.gov/.../power-and-profiteering-how-certain-industries-hiked-prices-fleeced-consumers

[Avicenna]

A source would be helpful.

[goaded]

Of course.

https://www.youtube.com/watch?v=VGTETdwkYU4

[joeldalton]

Wait, goaded tried to pass the leftist-run House of Representatives off as an objective source? Bahahahahahahahahahahahahahahahahahahahahahahaha…ah.. ahahahahahahahaha

[Avicenna]

@joeldalton: He once used the World Socialist Website as a source. Judging from
His posting, he uses that bs in his propaganda a lot.

Goaded is your standard European leftist lemming.

[joeldalton]

@Avicenna his socialism will come home to roost this winter when he can’t afford to heat his house.

[Avicenna]

@joeldalton: And you know the leftists are dying to lock everyone down again. Do you know what they did in Germany in 2020? Fire trucks went around neighborhoods with blaring on loudspeakers that everyone should stay inside. Police were parked at street corners to enforce the diktat.

[goaded]

@joeldalton Do you know what as hominem means? Idiot.

Like Fox News is going to report these facts.

[BJP21]

Corporate greed.

[msc545]

Not surprising.

[Anonymous]

It doesn't surprise me.