Comment on how long is the current era of inflation going to last?
Bitrot@lemmy.sdf.org 4 months agoIf it was just devalued currency the corporations would also be dealing with a devalued currency and not recording record profits.
Comment on how long is the current era of inflation going to last?
Bitrot@lemmy.sdf.org 4 months agoIf it was just devalued currency the corporations would also be dealing with a devalued currency and not recording record profits.
Alimentar@lemm.ee 4 months ago
Are these record profits adjusted for inflation? As in, are they earning more or is it nominally higher?
And yeah I mean it’s not just devalued currency, there are a lot of factors that go into inflation. But Id say it’s one of the biggest contributors for sure.
Interest rates stayed low for too long and people borrowed up to their eyeballs (corporations included), pumping a lot of currency into the market. That’s got to account for something no?
Bitrot@lemmy.sdf.org 4 months ago
Yes, that is adjusted for inflation. They raised prices beyond what was necessary to account for increased costs and had record high profit margins, so you had companies like ConAgra foods reporting profits 60% higher than the same quarter the year before, and people accepted it because of the pandemic and stimulus packages (“Biden dumped money in the economy!”) and labor shortages. It made a great scapegoat. Those loans existed before the pandemic, they really don’t account for what happened.
You can find a lot of information about greedflation.