Interesting thought…raising interest rates is the typical way of fighting inflation. That does, however, cause layoffs and that’s the point.
If we’ve got the measure that over 50% of the inflationary increases are due to corporate profits, simply raising prices, why should we force mass layoffs to cut demand and thus cut inflation. I’m just not sure.
Any thoughts on how you’d combat inflation without cutting demand via raising interest rates?
Okay…so money supply.
A few questions on that, considering it’s much more complicated than a tweet:
Which method of measurement? The SMBMA, Division Monetary Aggregates, Division Formula Index, basic M2 readings or?
Also, are you saying money supply is the sole driver (of course, we have data showing over 50% to be corporations simply raising prices)? If so, what instance made that possible and who did it?
Seems the largest portion of money supply increasing at a rapid rate was in 2020. So, is what you’re saying is the Trump administration’s handling of Covid is what resulted in our current inflation?
Regardless of who caused it, are you saying we should simply reduce money supply? Are you calling for a higher required reserve for banks? If so, at what level and do you include all sizes of banks?
Amazing comment. “Simply raising prices” as though doing so doesn’t present a risk to their business. They just cavalierly do this as though their customers are idiots.
Maybe, just maybe, there were market factors that forced them to raise their prices?
You think these organizations live in a bubble and are unaffected?
Now we wait a few hours while he tries and googles a blog stat agrees with his perspective.
It’s not esoteric knowledge. Put forth some effort
But, you own and run a corporation, right? So, from your personal perspective…what’s your take?
Of course…none of you actually have a comment as to how to address anything. Seems to be a running theme…
PLYWOOD WENT UP TO ALMOST $100 A SHEET FROM $25 IN 4 MONTHS WENT COVID STARTED……
REBAR IS MORE THEN DOUBLE……
CONCRETE HAS IS RIGHT THERE……
NOT BEING ENERGY INDEPENDENT IS A HUGE DRIVER….
THIS IS NOT ROCKET SCIENCE….
THE FED SAYING THEY ARE RAISING RATES THEY WON’T KNOW WILL FIX THE PROBLEM FOR 9 MONTHS AND THEN RAISING RATES BEFORE THE 9 MONTHS IS A CLOWN SHOW….
THE BANKS ARE A PONZI SCHEME ABOUT TO BLOW UP……
These are anecdotal and have nothing to do with inflation or inflation drivers. What your listing is supply issues and worker shortages due to Covid during 2020. It’s 2023 and now we’re discussing inflation and how much of that is corporate profits.
How high is plywood now?
Concrete is up, but doesn’t appear to be too much involved in Covid
Rebar is up but the graph clearly shows its not double.
Again, however -
You’re simply providing anecdotes unrelated to the discussion
How so?
I’m not sure you’re qualified for this discussion or one on “rocket science.” But, do tell…I see we were a net exporter of refined petroleum. By 2014, we were third as a producer of crude oil. I see we exported 10.055 million barrels a day during the last year of Obama, and we exported 7.863 million barrels a day at the end of Trump. We became a net exporter during Obama of petroleum for the first time since 1949. We became a net exporter of both refined and crude oil in 2019, under Trump. By October of 2021, we were the world’s largest producer. Currently, we produce 18.8 million barrels of oil a day but consume 20.5 million.
Now its gets a little more complicated - for example, in 2021, we produced 18.4 million barrels a day and consumed 18.12 million, but we still imported 7.86 million barrels a day. Why? “Lifting costs.” Often, it’s cheaper to get the oil out of the ground and cover shipping costs cheaper than it is to get oil out of the ground from here. We do produce enough oil to meet our own needs right this second, but its the wrong type. The weight of the oil defines how it will be broken down and used. In Texas and OK, we produce lighter, sweeter with less sulfur, compared to Russia and the Middle East who produce a much heavier crude.
For many years, most of the oil imported met the US needs so refineries worked towards focusing on oil that is heavier and less sweet. The key is the refineries not just “drill for oil.”
As with most things, Storm, things are not single sentence slogans. If you still feel your comment is relevant, please explain to us what being energy independent is in your words, and how that is a “huge driver” of inflation.
You appear to need basic 8th grade Macroeconomics.
Are they now? Worse than in 1897? Worse than 1929-33? Worse than 2007-2009?
Do tell…
Finally, you’ve again failed to provide anything as to solving an actual problem. Hopefully, with some effort, you’ll come up with some conclusions that are relevant to the conversation.
WHEN THE COST OF GAS RISES WHAT HAPPENS TO EVERYTHING ELSE?
YOU DO UNDERSTAND EVERYTHING IS DELIVERED?
THAT IS ALL YOU GOT?
This guy thinks that he can just post articles that agree with him and he’s accomplished a mission lol.
You own a business. Do you raise prices simply to raise profits?
Or are there reasons you raise prices?
Raw materials prices increase
Fuel increases
Suppliers increase costs (for their own similar reasons)
There could be other reasons not tied to supply side.
Establishing your product or service’s value perception in the market.
Aligning with norms in the market
But no one in corporate America just says “let’s just raise prices because…” and then doesn’t have a reason.
And the reason they don’t is because it can be extremely dangerous to do so without a well thought out reason behind it and a strategy to bring it forward.
YOU CAN’T JUST RAISE PRICES BECAUSE OTHERS THAT PERFORM THE SAME JOB WILL GET THE JOB INSTEAD OF YOU……
HEAD SHANKER SOUNDS LIKE HE OWNS A “FAKE COMPANY”……
Correct. That’s one reason. UNLESS you can establish to the market that your product or service deserves it.
Additionally, your current customers - you think they ain’t gonna belly ache if you don’t have a strategy to explain why you raised prices on them but added nothing?
This guy thinks his customers are idiots I guess
Gotcha, so you’ve got nothing to offer. Make sense.
If their costs increase, they raise prices accordingly. That, however, does not equate to a 700% increase in profits, for example.
https://www.cnn.com/2023/03/29/business/egg-profits-cal-maine/index.html
Corporate profits don’t show that. They show an increase in supply chain costs and yet show the largest increase in profitability they’ve ever encountered. When inflation jacks things up 6.04% (current rate of inflation), it doesn’t equate to a 700% increase in profits without deciding to raise prices arbitrarily. Eggs, for example, are inelastic. “Inelastic demand” is usually electric, gasoline, etc., however, eggs are an exception and included.
We’re not talking about the jacked up prices of luxury goods, we’re talking about what are considered necessities.
Notice how you are never questioning business, but will question the government, media, NASA, all astronomers, engineers, literally everyone…but, never, ever a corporation that isn’t related to media.
Not if they all raise prices. The data is as clear as day. You’re just don’t put forth any effort. You’re okay with corporations taking advantage of you, but think the entire globe is involved in a cabal against all humanity…of course, except corporations. It’s even funny how you pretend the banks are the enemy to you, yet the people you support bend over backwards to remove banking regulation on them. You still think you’re somehow on the other team. You are Team Chase, Team Goldmann Sachs, etc., no matter how you cut it.
When it comes to necessities, you’re dealing with inelastic demand. So, people are still going to buy them, regardless. That’s why the term exists in the first chapter of every Macroeconomics book in existence.
I think you, as a customer to various corporations, are…for sure. No denying that.
Mine, however, are not experiencing increased rates. You don’t know my industry in the slightest, obviously. But, you’re welcome to start your own and we’ll compare notes.
DUMB FCK “YOUR TEAM” IS THE ONE THAT SUPPORTS THESE PEOPLE……
Please tell me you didn’t use this as your example?
First of all, the media price for eggs nationally is around $4.25. I think it was a 50-60% increase year over year.
You’re right, inflation doesn’t fully explain the increase. Neither does logistics costs rising either.
But there was this little thing called Avian Flu.
Again- THERE WAS A REASON the prices went up. Egg producers didn’t just get together and agree to raise their prices just to make more money.
You seem triggered, Storm. We see the GOP numbers. I know you have a problem with accepting the most basic of reality, but the numbers are very clear - you’re a Republican, vote Republican, candidate’s are Republicans, and Republicans by and large are in favor of this.
Also, YOUR TEAM is the one who routinely removes regulations from the banks, just like Trump did and then told the crowd of richies how much money he made them that day. You keep listing Epstein. We have dozens of pics of Trump with Epstein, even to the point of him wishing Maxwell all the best while she was on trial.
You can keep covering your eyes and pretending reality isn’t there, but it’s quite clear to everyone watching you
Storm is team China. Storm is team Russia. Storm is team Chase Bank. Storm is team Goldmann Sachs. Storm is team Epstein
That was never a claim. You’re either misunderstanding or obfuscating.
So, how does that equate to a 700% increase in profits? Do tell…is NASA involved secretly on this too? Boo!
