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Corporate profits account for almost half the increase in Europe’s inflation

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Re: Corporate profits account for almost half the increase in Europe’s inflation

#11

Post by coding123 »

So, for the United States - we should be pointing fingers at one or two things...

Is it a) the FTC has not stopped bad mergers. Too much power over the price of food/gas/etc... in control by 1 company.

Or b) actual price collusion. From my personal research price collusion has become "legalized" through a cottage industry of "price analyst" companies that provide "good guestimates" of what gas, food, etc... should be. (aka realpage is out there for EVERYTHING already we just need to find them).

Re: Corporate profits account for almost half the increase in Europe’s inflation

#13

Post by starbugs »

TLDR:

* Profits: 45 percent

* Import costs: 40 percent

* Labour costs: 25 percent

Somehow obviously arriving at 110%?

"As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022."

"Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes had a slightly deflationary impact."

Re: Corporate profits account for almost half the increase in Europe’s inflation

#14

Post by tnel77 »

starbugs wrote: post #13

TLDR: * Profits: 45 percent * Import costs: 40 percent * Labour costs: 25 percent Somehow obviously arriving at 110%? "As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022." "Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes ha…

I’m told that greedy employees are to blame for 95% of inflation, so this is an interesting take on the subject.

/s in case someone thought I was serious?

Re: Corporate profits account for almost half the increase in Europe’s inflation

#15

Post by edrxty »

coding123 wrote: post #11

So, for the United States - we should be pointing fingers at one or two things... Is it a) the FTC has not stopped bad mergers. Too much power over the price of food/gas/etc... in control by 1 company. Or b) actual price collusion. From my personal research price collusion has become "legalized" through a cottage industry of "price analyst" companies that provide "good guestimates" of what gas, food, etc... should be…

In terms of price collision the big one is rent, there are a couple companies that sell software to literally all of the institutional landlords which determines what pricing should be for each market.

The only reason rent isn't currently going through the roof was that corporate fad of buying up every property under the sun for nice reliable income.

Re: Corporate profits account for almost half the increase in Europe’s inflation

#16

Post by koboll »

smt88 wrote: post #7
narcraft wrote: post #4

The cause of rain is the ground getting wet

This kind of reply is uninteresting and unhelpful. These statements about inflation drivers are surprising (to some) and highly relevant because they counter corporate and conservative propaganda. We now know that government assistance isn't the main villain in the brutal inflation spikes of the last few years, and we need voters to understand that too.

"corporate and conservative propaganda"

Most center-left economists are pretty dismissive of the idea that inflation is a corporate-profits-driven phenomenon too.

Re: Corporate profits account for almost half the increase in Europe’s inflation

#17

Post by QuarterReptile »

starbugs wrote: post #13

TLDR: * Profits: 45 percent * Import costs: 40 percent * Labour costs: 25 percent Somehow obviously arriving at 110%? "As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022." "Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes ha…

Why were corporations settling for such comparatively low profits before 2022?

Re: Corporate profits account for almost half the increase in Europe’s inflation

#20

Post by toomuchtodo »

QuarterReptile wrote: post #17
starbugs wrote: post #13

TLDR: * Profits: 45 percent * Import costs: 40 percent * Labour costs: 25 percent Somehow obviously arriving at 110%? "As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022." "Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes ha…

Why were corporations settling for such comparatively low profits before 2022?

Because they didn't know the pricing power they had. The macro gave them cover to stretch and see what would happen.
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