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Joseph Stiglitz agrees with greedflation.* He is a Nobel Prize winning economist. I believe greedflation is easy to prove - huge increase in profit margin witho
by kranke155 3y ago
Joseph Stiglitz agrees with greedflation.* He is a Nobel Prize winning economist.
I believe greedflation is easy to prove - huge increase in profit margin without a corresponding increase in costs, and public corpo PR focused on “inflation” as an excuse. It’s easy to prove with data.
IMO there are economists who talk about economics as a cult/religion, described by alt-economist Steve Keen as “economism”. One needs to distinguish between them.
* here is Stiglitz’s talk on the subject if you want to hear his opinion and corresponding dataset: https://youtu.be/4BAsZIHp9HI https://youtu.be/4BAsZIHp9HI
- Aerroon 3y ago>greedflation is easy to prove - huge increase in profit margin without a corresponding increase in cost But how would the cost of the previous few years (uncertainty from covid, war etc) show up in the current price? I doubt they have a line item for the risk/hardship the business had to go through over the past few years, but it's definitely going to have some cost that's expressed at a later time in prices. How would you account for that?
- kranke155 3y agoStiglitz has a talk about this where he discusses exactly this. Can’t think of the time though: https://youtu.be/4BAsZIHp9HI https://youtu.be/4BAsZIHp9HI
- curiousllama 3y agoI know some (now retired) marketing execs, and they were saying “just watch” about greedflation all last year. “Once there’s an excuse to raise prices, you raise them - high and fast - until sales fall”
- JimtheCoder 3y ago"Joseph Stiglitz agrees with greedflation. He is a Nobel Prize winning economist" Personally, I am not forming an opinion until I hear what Paul Krugman, another "Nobel Prize" winning economist, has to say. He says many things as well. Big brain on him.
- kranke155 3y agoJoseph Stiglitz has a 50 minute presentation on inflation, greedflation and monetary theory you can watch here: https://youtu.be/4BAsZIHp9HI https://youtu.be/4BAsZIHp9HI Feel free to debunk it.
- Quarrel 3y agoOf course there are serious people that also disagree with it (I'm pretty onboard fwiw). "Industries that raised prices more didn't tend to also make high profits": https://twitter.com/Noahpinion/status/1663865153039790081 https://twitter.com/Noahpinion/status/1663865153039790081 I can't find the graph now, but I saw a good one showing that largely the profits aren't in the companies with workers demanding higher wages. So, like in all things economic, a Nobel Prize isn't going to bring consensus. (and you could easily find Nobel Prize winning economists on the other side of Stiglitz- probably most of them are in any given topic)
- kranke155 3y agoSure I just think Stiglitz has been more right than wrong on virtually everything I’ve seen him talk about, which makes me have a high level of trust on his work. Here’s his talk on the subject: https://youtu.be/4BAsZIHp9HI https://youtu.be/4BAsZIHp9HI
- Quarrel 3y agoYeah, it isn't that mainstream though. I like his take on this and largely agree with him.
- kranke155 3y agoIs the mainstream consensus on important matters actually correct most of the time or all of the time? Or is it actually wrong, misleading and/or imprecise at least some of the time ?