Are greedy corporations causing inflation?

B

BidenPresident

Verified User
To believe that corporations are making out like bandits is to believe they are winning the fundamental battle in economics. Output must flow either to owners of capital—in the form of profits, dividends and rents—or to labour, as pay and perks. Economists refer to this as the “capital” or “labour” share of gdp. When one group wins, by definition the other must lose.

For the moment, the evidence suggests an even match-up. We have estimated the labour share across the oecd, a group of mostly rich countries. Labour has had the upper hand for most of the past three years, though more recently its share has fallen (see chart 1). In 2020 firms continued to pay people’s wages—helped by stimulus programmes—even as gdp dropped. In 2021 and 2022 strong demand for labour allowed many existing workers to demand more pay. It also pulled new people into the workforce. Across the oecd the share of working-age folk in a job is at an all-time high of 70%.

https://www.economist.com/finance-and-economics/2023/04/30/are-greedy-corporations-causing-inflation
 
BidenPresident said:
To believe that corporations are making out like bandits is to believe they are winning the fundamental battle in economics. Output must flow either to owners of capital—in the form of profits, dividends and rents—or to labour, as pay and perks. Economists refer to this as the “capital” or “labour” share of gdp. When one group wins, by definition the other must lose.

For the moment, the evidence suggests an even match-up. We have estimated the labour share across the oecd, a group of mostly rich countries. Labour has had the upper hand for most of the past three years, though more recently its share has fallen (see chart 1). In 2020 firms continued to pay people’s wages—helped by stimulus programmes—even as gdp dropped. In 2021 and 2022 strong demand for labour allowed many existing workers to demand more pay. It also pulled new people into the workforce. Across the oecd the share of working-age folk in a job is at an all-time high of 70%.

https://www.economist.com/finance-and-economics/2023/04/30/are-greedy-corporations-causing-inflation
Click to expand...

What constitutes as "greedy" corporation? Is labor every greedy?
 
BidenPresident said:
To believe that corporations are making out like bandits is to believe they are winning the fundamental battle in economics. Output must flow either to owners of capital—in the form of profits, dividends and rents—or to labour, as pay and perks. Economists refer to this as the “capital” or “labour” share of gdp. When one group wins, by definition the other must lose.

For the moment, the evidence suggests an even match-up. We have estimated the labour share across the oecd, a group of mostly rich countries. Labour has had the upper hand for most of the past three years, though more recently its share has fallen (see chart 1). In 2020 firms continued to pay people’s wages—helped by stimulus programmes—even as gdp dropped. In 2021 and 2022 strong demand for labour allowed many existing workers to demand more pay. It also pulled new people into the workforce. Across the oecd the share of working-age folk in a job is at an all-time high of 70%.

https://www.economist.com/finance-and-economics/2023/04/30/are-greedy-corporations-causing-inflation
Click to expand...

Yes! Take mayonnaise as just one example.

Every manufacturer in America that makes mayonnaise, also makes an egg-free sandwich spread- referred to as Salad Dressing.

When the Mayonnaise Manufacturers experienced an egg shortage, they all said their price increases had to go into effect to offset the cost they were paying for eggs- due to a World Wild Bird Flu pandemic.

But, they also raised the cost of their egg-free Salad Dressing products as much as they raised the price of their Mayonnaise- over 100%!

That is what is referred to as Price Gouging folks!
 
Geeko Sportivo said:
Yes! Take mayonnaise as just one example.

Every manufacturer in America that makes mayonnaise, also makes an egg-free sandwich spread- referred to as Salad Dressing.

When the Mayonnaise Manufacturers experienced an egg shortage, they all said their price increases had to go into effect to offset the cost they were paying for eggs- due to a World Wild Bird Fly pandemic.

But, they also raised the cost of their egg-free Salad Dressing products as much as they raised the price of their Mayonnaise- over 100%!
Click to expand...

Does anyone force you to buy mayonnaise or that swill known as salad dressing?
 
BidenPresident said:
I do not care what you believe.
Click to expand...

What exactly did I say I believe there? I asked you for evidence to support your claim that greed was the reason for the price increase. If you dont care what I believe then I have no reason to care what you believe.
 
You must log in or register to reply here.
Back
Top