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The term "Greedflation" is the stupidest thing to come out of the last couple years and is pure propaganda. It's a misunderstand of cause and effect. It's pushi
by donatj 3y ago
The term "Greedflation" is the stupidest thing to come out of the last couple years and is pure propaganda. It's a misunderstand of cause and effect. It's pushing blame for a problem the government created onto companies for not just eating the loss. It's absurd.
The economy was mismanaged and we had a massive spike in inflation. Your costs went up, businesses costs went up. Everyone's did. To maintain their business they are forced to raise their prices or shrink their product. Blaming inflation on "greed" is literally scapegoating.
The idea that businesses should keep their prices the same in spite of dwindling profit margins is just silly.
https://www.economist.com/leaders/2023/07/06/greedflation-is-a-nonsense-idea https://www.economist.com/leaders/2023/07/06/greedflation-is...
- acomjean 3y agoIt's a slightly vague term. Greedflation is companies using existing inflation as cover to increase prices faster than costs thus increasing their profit margins.
- titzer 3y agoShow me one goddamn "dwindling profit margin".
- bhickey 3y agoThere's a shortage of competition. This in turn gives companies more power to set prices. Previously they wouldn't have had the same latitude to pass rising costs onto consumers. Instead this would've eaten into their margins. You can gripe about the term, but it's descriptive of a real phenomenon.
- wredue 3y agoGreedflation is the term describing inflation way over and above what it should have been. Profits are not dwindling, they are better than they’ve ever been across most sectors. In addition, corporate ability to hide profit has been growing.
- donatj 3y agoI think you just misunderstand how bad inflation really is. Costs have risen by conservative estimates 18.7% since 2020. When your money is worth 18.7% less, anything less than an increase in "profit" of 18.7% dollar value is actually a loss because the value of the numbers has changed.
- wredue 3y agoDude no. Profit is represented as a portion of revenue, not inflation. If profit margin growth had to match inflation, then eventually, a company would be expected to have higher profit than revenue, which obviously makes no sense.