2 ms·

[citation needed] Inflation might not be driven by wages but by company profits: https://www.theguardian.com/business/2023/feb/24/an-economic-fairytale-austral

• nightski 3y ago
  Where do you think company profits come from if not from customers?
  • avgcorrection 3y ago
    Some central banks take measures in order to reduce the spending of consumers in order to calm down inflation. Which means less money for customers. So maybe it makes sense?
• FredPret 3y ago
  You know your own logic can beat that of others right? Citations are just links to places where other people wrote down their logic and aren't magic fairy dust that'll make an argument true. People geting paid more is inflationary. People producing more output is deflationary. We need lots of both. Company profits come from things being produced and then bought. So when profits are paid out to owners and employees as salaries, dividends, and other mechanisms, it gets filed under "people getting paid". Now my main point is that if S, T and M have been underpaid vs their true output, they should get more.