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Businesses are always greedy. The fact corporate profits are up is an effect of inflation, not a cause. A good essay on the topic is: https://www.economicforce
by nr378 3y ago
Businesses are always greedy. The fact corporate profits are up is an effect of inflation, not a cause.
A good essay on the topic is: https://www.economicforces.xyz/p/greedflation-lets-try-this-again https://www.economicforces.xyz/p/greedflation-lets-try-this-...
- coliveira 3y agoYou have to choose: they're either greedy or they cannot do anything about prices. If they are not driving prices to increase profits, then you can't say they're greedy. They're just doing whatever they can in a situation they don't have any control (they should also be fired and replaced by someone who can improve pricing).
- NoboruWataya 3y agoI don't really get what you mean. They are always greedy, meaning they will always set prices at the level that is most profitable for them. Which simplistically means they will increase prices until the impact of higher prices on sales outweighs the impact on margins. So their ability to set prices is constrained, principally by competition as well as the tendency of consumers to simply do without if the price is too high. When there is more money in the economy (eg, due to lower interest rates), consumers will tolerate higher prices for the same goods. Thus corporations have a greater ability to set prices, and they react, predictably, by increasing those prices.