I am just going to quote parts of the paper to precaution from misinterpretation and hasty judgement. I also suggest to read the paper in its entirety — most of

I am just going to quote parts of the paper to precaution from misinterpretation and hasty judgement. I also suggest to read the paper in its entirety — most of it can be understood without any deep knowledge of economics. > While this accounting identify[GDP Deflator = Unit Profit + Unit Labor cost + Unit Taxes] does not allow for any causal interpretation, it shows how (changes in) the GDP deflator is reflected in profits per unit of real GDP (unit profits), labor compensation per unit of real GDP (unit labor cost), and taxes less subsidies per unit of GDP (unit taxes). > While nominal profits have increased, this is not necessarily true for profitability. > [Dhingra (2023) and Haskel (2023)] caution against an oversimplistic interpretation where an increase in gross operating surplus is interpreted as corporate profits being the largest driver of inflation The paper has to rely on very strong assumptions to come to its conclusion because of that.