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Corporate profits are an effect, not a cause. And you’d expect profits to hit records after 20% cumulative inflation + not being able to hire enough people to e

Corporate profits are an effect, not a cause. And you’d expect profits to hit records after 20% cumulative inflation + not being able to hire enough people to expand the business. I don’t buy the supply chain argument much either, but I think the huge economic stimulus from the Fed and government + many people dying or exiting the workforce led to both wage inflation (pretty glaringly obvious looking at eg fast food pay, also in the amount of HC expansion in big tech, etc) and more dollars chasing goods/services that did not increase as quickly as the money supply.

themitigating 4y ago
The total stimulus was less than $3000 for most people and last provided a year ago. How can someone not work just getting that?
- opportune 4y ago
  Ok, now add all the money infused to the economy because of PPP and 0% interest rates, QE (did you know the Fed bought almost as many MBS during COVID as during the GFC?), rent forgiveness, and enhanced unemployment. All that money doesn’t just affect the person that receives it, it increases the monetary supply and flows throughout the entire economy I’m not saying people weren’t working because of the 3k stimulus or enhanced UE at all. I’m saying that those policies, along with many others, created inflation. When people have more money while the economy produces the same (or less) amount of goods/services you get inflation
  - themitigating 4y ago
    "I’m saying that those policies, along with many others, created inflation. " What matters is what had the most effect, you also only mentioned the stimulus in your original comment.
    - opportune 4y ago
      Sorry, jargon misunderstanding. All of those policies are stimulatory. I figured people would understand that “economic stimulus from the Fed + government” referred to all stimulus, not just the personal checks from the government Regardless, I stand by my assertion that these policies are the cause that led to effects like low unemployment, inflation, and increased corporate profits. The people only pointing to corporations are just picking who they want to be responsible.

themitigating 4y ago

The total stimulus was less than $3000 for most people and last provided a year ago. How can someone not work just getting that?

opportune 4y ago
Ok, now add all the money infused to the economy because of PPP and 0% interest rates, QE (did you know the Fed bought almost as many MBS during COVID as during the GFC?), rent forgiveness, and enhanced unemployment. All that money doesn’t just affect the person that receives it, it increases the monetary supply and flows throughout the entire economy I’m not saying people weren’t working because of the 3k stimulus or enhanced UE at all. I’m saying that those policies, along with many others, created inflation. When people have more money while the economy produces the same (or less) amount of goods/services you get inflation
- themitigating 4y ago
  "I’m saying that those policies, along with many others, created inflation. " What matters is what had the most effect, you also only mentioned the stimulus in your original comment.
  - opportune 4y ago
    Sorry, jargon misunderstanding. All of those policies are stimulatory. I figured people would understand that “economic stimulus from the Fed + government” referred to all stimulus, not just the personal checks from the government Regardless, I stand by my assertion that these policies are the cause that led to effects like low unemployment, inflation, and increased corporate profits. The people only pointing to corporations are just picking who they want to be responsible.