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Yes and the investor class are the rich. Profit margins should not be rising in a time of scarcity. It's profiteering and nobody is doing anything about it.

adam_arthur 5y ago
Blaming inflation on corporate greed is a tale as old as time. And it's largely debunked economic pseudo science. Companies and people are greedy all the time, that's the fundamental basis of capitalism. Capitalism is an acceptance of this and regulations to shape around actors working in their own self interest. Are companies more greedy now than they were in 2019? No An opt in moralism based economy will never work and has been tried and failed many times.
- Supermancho 5y ago
  > Blaming inflation on corporate greed is a tale as old as time. And it's largely debunked economic pseudo science. That wasn't a claim. > Companies and people are greedy all the time, that's the fundamental basis of capitalism. Oversimplification. > An opt in moralism based economy will never work and has been tried and failed many times. This wasn't suggested. Your comment is vapid, in case you're wondering.
  - adam_arthur 5y ago
    It's implied. Clearly the comment above is suggesting corporate greed is partly contributing to cost pressures. I countered this thinking with my own set of thinking. And if my comment is vapid, yours seems a tier below. You've said nothing other than a personal attack. In the 70s they tried price controls to curb "corporate greed" and it led to mass shortages. How about use some brainpower to refute something I've said rather than insult? Do you have any critical thought?
    - Supermancho 5y ago
      > It's implied. > Clearly the comment above is suggesting corporate greed is partly contributing to cost pressures. Inflation is not related to greed, regardless if you want to say that astrology influences your lottery results. So no. You can be frustrated about it all you like. Good luck with that.
collegeburner 5y ago
How are you suggesting we "do something" about it? Lowering margins will not fix scarcity, it may even make it worse, so this seems more like a resentment of "they have more than other people" and thinking that it is wrong, not so much a concern over scarcity. There was a proposal to do something, stop increasing liquidity and raise rates, because these are some primary levers we have available to "do something" about the economy.
makomk 5y ago
Why wouldn't profit margins be rising in a time of scarcity? Fundamentally, prices are how we choose to allocate scarce resources, and if demand outstrips supply prices have to go up until it doesn't - if the companies don't increase prices, scalpers will gladly take the extra profit instead. Also, there seem to be a bunch of key manufactured products like commodity ICs which are only viable at the current price due to the equipment to produce them having been bought long ago, which means that it's only viable to make the investments needed to increase production if prices and profits go up in a substantial and sustained way.

adam_arthur 5y ago

Blaming inflation on corporate greed is a tale as old as time. And it's largely debunked economic pseudo science. Companies and people are greedy all the time, that's the fundamental basis of capitalism. Capitalism is an acceptance of this and regulations to shape around actors working in their own self interest. Are companies more greedy now than they were in 2019? No An opt in moralism based economy will never work and has been tried and failed many times.

Supermancho 5y ago
> Blaming inflation on corporate greed is a tale as old as time. And it's largely debunked economic pseudo science. That wasn't a claim. > Companies and people are greedy all the time, that's the fundamental basis of capitalism. Oversimplification. > An opt in moralism based economy will never work and has been tried and failed many times. This wasn't suggested. Your comment is vapid, in case you're wondering.
- adam_arthur 5y ago
  It's implied. Clearly the comment above is suggesting corporate greed is partly contributing to cost pressures. I countered this thinking with my own set of thinking. And if my comment is vapid, yours seems a tier below. You've said nothing other than a personal attack. In the 70s they tried price controls to curb "corporate greed" and it led to mass shortages. How about use some brainpower to refute something I've said rather than insult? Do you have any critical thought?
  - Supermancho 5y ago
    > It's implied. > Clearly the comment above is suggesting corporate greed is partly contributing to cost pressures. Inflation is not related to greed, regardless if you want to say that astrology influences your lottery results. So no. You can be frustrated about it all you like. Good luck with that.

collegeburner 5y ago

How are you suggesting we "do something" about it? Lowering margins will not fix scarcity, it may even make it worse, so this seems more like a resentment of "they have more than other people" and thinking that it is wrong, not so much a concern over scarcity. There was a proposal to do something, stop increasing liquidity and raise rates, because these are some primary levers we have available to "do something" about the economy.

makomk 5y ago

Why wouldn't profit margins be rising in a time of scarcity? Fundamentally, prices are how we choose to allocate scarce resources, and if demand outstrips supply prices have to go up until it doesn't - if the companies don't increase prices, scalpers will gladly take the extra profit instead. Also, there seem to be a bunch of key manufactured products like commodity ICs which are only viable at the current price due to the equipment to produce them having been bought long ago, which means that it's only viable to make the investments needed to increase production if prices and profits go up in a substantial and sustained way.