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PG and all the other smart people were making fun of average citizen on twitter when they blamed corporations for some of the inflation.
by objektif 2y ago
PG and all the other smart people were making fun of average citizen on twitter when they blamed corporations for some of the inflation.
- somenameforme 2y agoI wouldn't quite rely on this article as a game changer. The author's evidence for his shocking headline is exclusively him assuming his own conclusion, and then adding a healthy helping of fudgery on top of that. From the article --- How do you aggregate just the oil industry? Well, it’s pretty clear that in 2021 and 2022, the industry did fantastically well, with the “the top 25 companies [making] more than $205 billion in profits in 2021,” and an “even more astounding” amount in 2022. Of course, not all profits are due to price-fixing, but $205 billion is just the top 25, not the whole industry. And profits got much much better the next year. So let’s layer on a rough guess of a $200 billion increase in profits in 2021 that Scott Sheffield implies, which is 27% of the total corporate profit increase that year. That’s a pretty astounding amount, more than a quarter of the total inflationary increase being a result purely of a price-fixing scheme. --- So he's assuming that 100% of inflation is caused by corporate profits (which is beyond absurd), and then stating that since the oil industry made up 27% of total corporate profits (using evidence that seems to be wildly hand-wavey at best, even though the exact numbers are readily available), that they therefore caused 27% of all inflation. And somehow, the giant price-fixing conspiracy (which is a gross misrepresentation of what the FTC is saying) was the reason they made these 27% of profits (which is absurd).
- NewJazz 2y ago"smart people"