Yes, profits need to be reduced by means of paying employees more when there is inflation. You can't keep wages stagnant with a rising inflation and keep up pro

Yes, profits need to be reduced by means of paying employees more when there is inflation. You can't keep wages stagnant with a rising inflation and keep up profits, works out for stock holders in the short term but for those who don't sell fast and for basicall everyone in the economy this isn't sustainable and can even be called the prime cause of a recession.