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Economic head scratcher.
May 13, 2022 19:05:57   #
PeterS
 
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation

Reply
May 13, 2022 19:10:28   #
Bassman65
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


Agreed

Reply
May 13, 2022 19:22:03   #
Canuckus Deploracus Loc: North of the wall
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


It is rather baffling...
But I don't see why you think it's only the Republicans to blame...

Reply
 
 
May 13, 2022 19:22:41   #
Weasel Loc: In the Great State Of Indiana!!
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


A Very, Very Good 👍 post. Now I ask if Consumer Boycotts a waste of time? Why would we need investigations on something we already know? ExxonMobile created its own Foreign Trade Policy in 1972.

Reply
May 13, 2022 19:23:19   #
Milosia2 Loc: Cleveland Ohio
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


Absolutely.
We are still a country of Capitalism .
But, this is unregulated capitalism. Otherwise known as pure theft.
They have pulled all of the governmental teeth that always had power over them.
And told them what to do .
Today they have no fear of government .
And as Reagan let the Sherman anti trust act Slide. Corporations can become as large as they want . Coupled with that is Reagan’s
Lifting the Cap on CEOs pay.
Combine the two and you have a potential disaster. A corporation that can get as big as it can and a CEO who can make as much money as he wants.
What we have today is large corporations buying large corporations. Laying off half of the employees, and Firing the other half !
Keeping all the pension money and any other funds that might need to be “liquidated”
This is what is keeping the DOW up .
No one is manufacturing anything. Just trading corporations for fun and profit.
As the rich get richer……
We can’t afford to live here.
Vote Republican , I’m sure they’ll fix this,
Wink wink
.

Reply
May 13, 2022 19:31:25   #
son of witless
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


Congratulations in shifting the blame away from your boy Joe. As far as Robert Reich, the man is even stupider than Biden.

Reply
May 13, 2022 19:35:08   #
woodguru
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?


Several CEOs have been caught on tape and video talking about taking advantage of escalating prices to increase theirs for more profit. If we had a functional house and senate serious action could be taken to legislate windfall profits and profiteering laws.

Reply
 
 
May 13, 2022 20:02:09   #
Parky60 Loc: People's Republic of Illinois
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)

As we came out of the pandemic demand went up.

Economics 101 tells us that when demand goes up and supply remains the same, prices go up.

Hence, large companies raised their prices and started to increase production to meet demand. Because of this increase in production, the concept of economies of scale kicked in.

Economies of scale are cost advantages reaped by companies by increasing production due to demand. This happens because costs are spread over a larger number of goods—the larger the business, the more the cost savings. Hence, the more the cost saving the greater the profit, as in record profits.

Couple this with the COVID relief packages and the Fed having pumped over $6 TRILLION into the money supply in the last two years to stimulate the economy, the result is massive devaluation of the dollar. This increase in the money supply is the main reason for inflation that we’re seeing now

And you may mention that supply issues should be lessening this but I’ll say that I worked at a distribution center that supplied forklift parts for our dealers in the western hemisphere, our demand increased and while we had supply chain issues, it had minimal impact on our increased profits.

A simple explanation for a simple mind Pete.

Reply
May 13, 2022 20:23:21   #
son of witless
 
woodguru wrote:
Several CEOs have been caught on tape and video talking about taking advantage of escalating prices to increase theirs for more profit. If we had a functional house and senate serious action could be taken to legislate windfall profits and profiteering laws.


You know nothing about how the real economy works. Businesses always seek to maximize their profits. Normally competition restrains them from price increases. Thanks to Biden there is too much money in the system, chasing too few goods.

Why didn't companies raise their prices this badly during Trump ? Did they become greedy when Biden became President ? Windfall profit taxes and profiteering laws will make shortages worse. They always do. If you knew history, you'd know that.

Reply
May 13, 2022 20:43:01   #
LogicallyRight Loc: Chicago
 
Milosia2 wrote:
Absolutely.
We are still a country of Capitalism .
But, this is unregulated capitalism. Otherwise known as pure theft.
They have pulled all of the governmental teeth that always had power over them.
And told them what to do .
Today they have no fear of government .
And as Reagan let the Sherman anti trust act Slide. Corporations can become as large as they want . Coupled with that is Reagan’s
Lifting the Cap on CEOs pay.
Combine the two and you have a potential disaster. A corporation that can get as big as it can and a CEO who can make as much money as he wants.
What we have today is large corporations buying large corporations. Laying off half of the employees, and Firing the other half !
Keeping all the pension money and any other funds that might need to be “liquidated”
This is what is keeping the DOW up .
No one is manufacturing anything. Just trading corporations for fun and profit.
As the rich get richer……
We can’t afford to live here.
Vote Republican , I’m sure they’ll fix this,
Wink wink
.
Absolutely. br We are still a country of Capitalis... (show quote)


***Vote Republican , I’m sure they’ll fix this,
>>>Thanks. I will

Reply
May 14, 2022 09:13:47   #
Big dog
 
PeterS wrote:
So how can corporations be making record profits when inflation is at record highs? Wouldn't their cost of goods sold have to be increasing equal to or faster than inflation in order to cause them to raise their prices so much? So how could they be making record profits if that was the case?

I think Robert Reich hit the nail on the head when he said the American economy is in the hands of too few corporate giants with the power to raise prices when they feel like it. Think about it, that's the reason behind our baby formula crisis--not enough companies making it. What I find ironic is that what's happening to our economy is nothing short of what would happen under communism only we have a country that is supposed to be governed by capitalism yet Republican protected corporatism seems to have taken over with inflation being our reward!

This last part are my thought's not Roberts but I think they are equally spot-on. We aren't a country of capitalism anymore but a country of fewer and fewer corporations so not enough competition to drive prices down.

https://www.inequalitymedia.org/the-truth-about-inflation
So how can corporations be making record profits w... (show quote)


With this I must agree!

Reply
 
 
May 14, 2022 14:04:18   #
Peewee Loc: San Antonio, TX
 
Big dog wrote:
With this I must agree!


Eric Holder - never let a crisis go to waste.

Reply
May 15, 2022 09:10:58   #
jack sequim wa Loc: Blanchard, Idaho
 
Parky60 wrote:
As we came out of the pandemic demand went up.

Economics 101 tells us that when demand goes up and supply remains the same, prices go up.

Hence, large companies raised their prices and started to increase production to meet demand. Because of this increase in production, the concept of economies of scale kicked in.

Economies of scale are cost advantages reaped by companies by increasing production due to demand. This happens because costs are spread over a larger number of goods—the larger the business, the more the cost savings. Hence, the more the cost saving the greater the profit, as in record profits.

Couple this with the COVID relief packages and the Fed having pumped over $6 TRILLION into the money supply in the last two years to stimulate the economy, the result is massive devaluation of the dollar. This increase in the money supply is the main reason for inflation that we’re seeing now

And you may mention that supply issues should be lessening this but I’ll say that I worked at a distribution center that supplied forklift parts for our dealers in the western hemisphere, our demand increased and while we had supply chain issues, it had minimal impact on our increased profits.

A simple explanation for a simple mind Pete.
As we came out of the pandemic demand went up. br ... (show quote)



It's a formula called velocity of currency. The lockdowns slowed to a snail's pace the "Velocity ". Orchestrate a supply chain disaster, food Shortages, consumer and corporate essentials, then after dumping tens of trillions into Wallstreet open up the lockdowns creating a high "Velocity " of currency into the economy that will accelerate food Shortages and in many cases create stockpiling or panic buying that decreases the post lockdown national 90 day food supply to today's 50 day and rapidly declining. Trillions from the fed that went to Wallstreet instead of mainstream created the inflation headed to super/hyper inflation leading to the highest consumer debt in history (emptying out personal bank accouts) with the end game that pops the biggest economic bubbles in the history of the world into economic collapse. End game= block chain technology-cryptocurrency....=reset NWO, considering this administration is giving the W.H.O. authorities to make public health decisions over Americans medical treatments, medications, lockdowns ect.ect plus preparing a centralized block chain cryptocurrency, in no way are they going to lose power in 2022 and that's fact. To determine fact from opinion what resulted from Hillary destroying tens of thousands of emails, laptops, hard drives, cell phones and more? What became of the 2020 election evidence of widespread fraud? What became of Obama usurping the constitution? And we can add illegal activities of Republican and Democrat leaders (with few exceptions)? The answer a big fat nothing.
The next Timothy McFay red flag, resurgence of the pandemic, race riots and burning down cities (Social Justice) food Shortages and riots, economic meltdown? Pick any possible scenarios and watch the expansion of "Mail in Ballots " with new evidence of widespread massive voter fraud and "Nothing will happen " . I'm sorry to say to my fellow conservatives/liberals that the course this ship is on, there will be no reverse. Politics be damned everyone will be negatively effected.
I can add, the Bible speaks to exactly what is happening, hmmm.

Reply
May 15, 2022 17:49:53   #
Parky60 Loc: People's Republic of Illinois
 
jack sequim wa wrote:
It's a formula called velocity of currency. The lockdowns slowed to a snail's pace the "Velocity ". Orchestrate a supply chain disaster, food Shortages, consumer and corporate essentials, then after dumping tens of trillions into Wallstreet open up the lockdowns creating a high "Velocity " of currency into the economy that will accelerate food Shortages and in many cases create stockpiling or panic buying that decreases the post lockdown national 90 day food supply to today's 50 day and rapidly declining. Trillions from the fed that went to Wallstreet instead of mainstream created the inflation headed to super/hyper inflation leading to the highest consumer debt in history (emptying out personal bank accouts) with the end game that pops the biggest economic bubbles in the history of the world into economic collapse. End game= block chain technology-cryptocurrency....=reset NWO, considering this administration is giving the W.H.O. authorities to make public health decisions over Americans medical treatments, medications, lockdowns ect.ect plus preparing a centralized block chain cryptocurrency, in no way are they going to lose power in 2022 and that's fact. To determine fact from opinion what resulted from Hillary destroying tens of thousands of emails, laptops, hard drives, cell phones and more? What became of the 2020 election evidence of widespread fraud? What became of Obama usurping the constitution? And we can add illegal activities of Republican and Democrat leaders (with few exceptions)? The answer a big fat nothing.
The next Timothy McFay red flag, resurgence of the pandemic, race riots and burning down cities (Social Justice) food Shortages and riots, economic meltdown? Pick any possible scenarios and watch the expansion of "Mail in Ballots " with new evidence of widespread massive voter fraud and "Nothing will happen " . I'm sorry to say to my fellow conservatives/liberals that the course this ship is on, there will be no reverse. Politics be damned everyone will be negatively effected.
I can add, the Bible speaks to exactly what is happening, hmmm.
It's a formula called velocity of currency. The l... (show quote)

Hey, I was just giving the Reader's Digest version but thanks for expounding.

And I wholeheartedly agree that the Bible speaks to exactly what is happening, hmmm.

Reply
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