Greed Inflation

Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs

You can find the story at Fortune Magazine.

Quote: rxwine

Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs

You can find the story at Fortune Magazine.

Any mention of the 'greedflation' of the unions? How about all the people who took Covid payments they didn't need or qualify for? How was the 'more than half' calculated? You actually take that article and 'study' at face value? I give you credit for having more brains than that. The whole communist Biden administration is based on making the businesses that bad guys even while it makes those that support it rich.

Righties when you point out Biden isn’t to blame for inflation:

Unions can't automatically inflate their profits like corporations. And do I count the dishonest right-wingers taking covid payments, or just the leftist?

Quote: rxwine

Unions can't automatically inflate their profits like corporations. And do I count the dishonest right-wingers taking covid payments, or just the leftist?

I disagree with your first statement. I would count anybody that takes government handouts. Big business, small business and individuals.

I believe it just wasn't feasible to means test everyone on a massive scale for covid benefits because qualifications weren't straight forward, nor was it possible to use some list of previous beneficiaries. An upscale business could just as easily be as affected as the usual beneficiaries. Besides no infrastructure is even in place to means test at that level. Plus, all the reduction of actual onsite workers makes it likely more impossible.

Yes, they have been going after covid fund frauds. And still are. Check into it. Yup, it's the commie Biden administration doing that.

Anyway, all those "commie" ideals have a lot more trouble taking hold if big business takes a more pro-worker stance, and some sense of ethical relationship from the top all the way down to the lowest worker. You don't want unions, don't create the environment, of "Fuck all, I got mine, go pound sand". You need workers. They can't all be at the top.

Well at least until Ai and robots take over...probably next year.

Inflation from "peak" anything will be brutal and probably a matter of time. Monetary policy won't help. I still get upset so many things we buy are complete garbage considering the waste of raw materials.

Quote: rxwine

Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs

In dollars, corporate profits are at a peak, but adjusted for inflation, corporate profits are slightly below where they were in the second quarter of 2021.

'Rising profits and inflation aren’t a corporate conspiracy.'

'...corporate profits are now falling and have been for three straight quarters (two if you exclude financial companies), even as inflation has persisted.'



Prices rose because Biden unnecessarily injected another $1.5 trillion into the money supply in 2021, creating excess spending by making consumers flush with cash. They bid up the prices of goods and services, then demanded higher wages to pay for them. Which put further inflationary pressure on the costs of goods and services. Higher costs for services are now driving inflation. Not food and energy.

Quote:

Summary: In May 2023, the New York Times reported that economists fear the Federal Reserve "may feel
compelled to keep raising interest rates, or at least lower them" due to the "world's biggest companies"
continuing to increase prices in order to protect "cushioned corporate profits." The average S&P 500
company increased its profit margin from the end of 2022, partially led by the consumer discretionary sector,
while spending a record $922.7 billion on stock buybacks and a record $564.6 billion in dividends.
Some of the largest general consumer S&P 500 companies have admitted to benefiting from increased
prices as their net profits increased year-over-year and they rewarded shareholders with billions invvhandouts. A few of these companies include:
● Kimberly-Clark, whose executives touted being able to "rapidly implement broad pricing actions" and
revealed that "pricing has continued to be a big driver behind our top line growth," saw its FY 2022
net income increase 6.3% year-over-year to nearly $2 billion and rewarded shareholder with $1.7
billion in stock buybacks and dividends. Kimberly-Clark's most recent quarter showed its net income
increasing by $40 million year-over-year to $575 million as it spent a combined $425 million on
shareholder handouts.
● PepsiCo, whose Chairman and CEO recently admitted that the company might "have to take
additional pricing," saw its net income increase by 16.9% to nearly $9 billion while spending over $7.6
billion in stock buybacks and dividends, with stock buybacks increasing 1,313% from 2021.
● General Mills, whose executives admitted to "getting smart about how we look at pricing" while
implementing "list price increases," saw its net income increase 16.5% to $2.7 billion in its FY 2022
and saw continued profit increases in the first nine months of its FY 2023. Meanwhile, the company
spent over $2.12 billion in shareholder handouts and $1.2 billion on the acquisition of Tyson Foods'
pet treats business in its FY 2022 and has nearly matched shareholder handouts in just the first nine
months of FY 2023.
● Tyson––whose executives touted seeing "significant pricing power of our portfolio with a year-overyear increase of 7.6%"––saw its net income increase from $3 billion in FY 2021 to over $3.2 billion in
FY 2022 and rewarded shareholders with $1.35 billion in handouts––$652 million more than the
previous year, including a 948.5% increase in stock buybacks.
● Ulta Beauty––whose executives touted benefiting from an "elevated level of price increases"––saw
its FY 2022 net income jump 26% to $1.2 billion and continued to see profit increases in Q1 FY 2023,
all while announcing a new $2 billion stock buyback program that has resulted in the company
spending over $1.1 billion on buybacks since January 2022

Quote:

The findings add to the idea that corporate greed can be a driver of inflation, a phenomenon referred to by some as “greedflation.”

https://thehill.com/business/economy/4057722-greedflation-is-the-new-inflation-as-corporate-profits-balloon-report/