Corporate profits are up 37% in a time of inflation? CEO pay increases 16%? Greed drives inflation. When money is infused into a growing booming economy, the thieves come out of the woodwork. By the way, we do not have a shortage of oil. We have a hoarded supply by the oil companies.
A record July net profit margin reading from the National Association for Business Economics (NABE) survey shows that a majority of companies are successfully passing on increased costs to customers.
While widespread, the profitability gains are not accruing equally across the market or sectors.
Concerns remain that the transitory inflation forecast by the Federal Reserve could turn against the central bank and the economy if it lasts too long, with a particular impact on smaller companies.
Ways to curb inflation: (no one wants any of these)
1. Price controls
2. Curb or cut wages
3. Raise interest rates.
Other factors that drive prices higher are tariffs, government subsidies, and tax breaks for corporations who buy back shares and pad their own pockets.
A tariff is a tax on he consumer.
Inflation will subside when consumers decide not to spend discretionary money (luxury goods, cars, appliances, vacations, etc.) In the second year of a pandemic that began by wiping out 20 million jobs, American workers are doing surprisingly well. It’s just that American business is doing even better, a consequence of greed.