b b but inflation!...U.S. corporate profits jump 25% in 2021 to record high

[ogc163]

bootlickers arguing that these already hugely profitable corporations need to raise prices as a "margin of safety" so they can be even more profitable right now in preparation for a supposedly difficult future....in which they will also be profitable.


Yeah, I'm sure oil companies would be on the verge of bankruptcy next year if they didn't squeeze out another few billion this year.

Beloved I ain't never call you out your name so chill with the silly nonsense.

 

[phcitywarrior]

YOY increase in Manufacturing PPI (Producer Price Index) as of Feb 22- 16.26%

YOY increase in CPI (Consumer Price Index) as of Feb 22 - 7.98%

Producer Price Index by Industry: Total Manufacturing Industries

Consumer Price Index for All Urban Consumers: All Items in U.S. City Average


On first viewing, the argument that Corporations are the ones driving large scale inflation doesn’t seem to hold weight if the increase in the cost of production is actually higher than the increase in cost of consumer goods.

The Commodity PPI is actually at about 20% YoY as of Feb’22

I’ve maintained the primary driver of this inflation we’re seeing is simply due to expansion of the money supply through the Fed’s policies during the pandemic. They increased consumer demand at a time when supply could not meet said demand (production was halted/stalled due to lockdowns).

 

[Yapdatfool]

YOY increase in Manufacturing PPI (Producer Price Index) as of Feb 22- 16.26%

YOY increase in CPI (Consumer Price Index) as of Feb 22 - 7.98%

Producer Price Index by Industry: Total Manufacturing Industries

Consumer Price Index for All Urban Consumers: All Items in U.S. City Average


On first viewing, the argument that Corporations are the ones driving large scale inflation doesn’t seem to hold weight if the increase in the cost of production is actually higher than the increase in cost of consumer goods.

The Commodity PPI is actually at about 20% YoY as of Feb’22

I’ve maintained the primary driver of this inflation we’re seeing is simply due to expansion of the money supply through the Fed’s policies during the pandemic. They increase consumer demand at a time when supply could not meet said demand (production was halted/stalled due to lockdowns).

So corps should not see record profits since it costs more to make than to sell? If its cost more to manufacture a good than you make selling it, isn't that a loss?

 

[phcitywarrior]

So corps should not see record profits since it costs more to make than to sell? If its cost more to manufacture a good than you make selling it, isn't that a loss?

Profit = Revenue - Costs

It can cost you more to manufacture goods, but you can save on costs elsewhere.

I know my company saved a ton on T&E (travel and entertainment) since there was no flying for conferences and the like.

The revenue side also has to be factored in. The Fed juiced consumer demand something serious during the bandemic.

 

[Broke Wave]

Higher profits can be the result of greater efficiency or increased prices, but the increased prices can be the result of a) increased costs in inputs or b) establishing a margin of safety on the front end for a future potential increase in input costs.

If all food costs are going up uniformly from company to company then maybe you have an argument. But the wildly variable price increases from product to product indicate that it is more driven by a corporate charter of “fiduciary responsibility” rather than any sort of global macro considerations. When the price and usage of oil plummeted in the wake of the initial covid crash prices of consumer goods did not correspond in any meaningful way.

 

[Mook]

Millions of discussions on thousands of problems and literally nothing done about it lol. It took like 7 years for flint to get water, this country is finished.

 

[Wild self]

Millions of discussions on thousands of problems and literally nothing done about it lol. It took like 7 years for flint to get water, this country is finished.

We need bloodshed in the form of bullets and guillotines

 

[Professor Emeritus]

YOY increase in Manufacturing PPI (Producer Price Index) as of Feb 22- 16.26%

YOY increase in CPI (Consumer Price Index) as of Feb 22 - 7.98%

Producer Price Index by Industry: Total Manufacturing Industries

Consumer Price Index for All Urban Consumers: All Items in U.S. City Average


On first viewing, the argument that Corporations are the ones driving large scale inflation doesn’t seem to hold weight if the increase in the cost of production is actually higher than the increase in cost of consumer goods.

The Commodity PPI is actually at about 20% YoY as of Feb’22

I’ve maintained the primary driver of this inflation we’re seeing is simply due to expansion of the money supply through the Fed’s policies during the pandemic. They increase consumer demand at a time when supply could not meet said demand (production was halted/stalled due to lockdowns).

The "producer price index" is solely relevant to manufacturing, which is a minority sector of the US economy. It doesn't reflect sellers of raw materials (whose price gouging affects the manufacturers as well as the consumer) nor does it reflect retail.

The very fact that US corporate profits are up, as show in the OP, proves that for corporations as a whole increases in costs have cut into expanding profits, even if it's possible that is true for some subset of the manufacturing sector.

 

[phcitywarrior]

The "producer price index" is solely relevant to manufacturing, which is a minority sector of the US economy. It doesn't reflect sellers of raw materials (whose price gouging affects the manufacturers as well as the consumer) nor does it reflect retail.

The very fact that US corporate profits are up, as show in the OP, proves that for corporations as a whole increases in costs have cut into expanding profits, even if it's possible that is true for some subset of the manufacturing sector.

Look at what I posted afterward concerning the Commodity price index...up 20% YoY.

 

[Professor Emeritus]

The corporation defense force in this thread

You goofies are so lost.

It's pathetic. The fact that a lot of Americans want to go to bat for corporations while they consistently get screwed by them is

They need a good ol' pistol whippin' to make themselves humble

There is an incredible amount of advertizing designed to convince Americans that corporations have their best interests at heart. On top of that, they own the majority of the politicians, who repeat their narratives. The same goes for the think tanks and many of the "pundits". Even a significant # of university departments are funded by the very corporations whose practices they should be critiquing.

When you see all of that, it's not at all surprising that so many Americans defend corporations. Such a vast volume of their informational input originates with them.

 

[Professor Emeritus]

Look at what I posted afterward concerning the Commodity price index...up 20% YoY.

Which is resulting in profits for the sellers of commodities, no? The commodity price index reflects the price they're demanding for their commodities, not the cost required to produce them.

 

[phcitywarrior]

Which is resulting in profits for the sellers of commodities, no? The commodity price index reflects the price they're demanding for their commodities, not the cost required to produce them.

And commodities are input to produce goods and services. You can check the Fed breh, they have other PPIs (Retail, Warehousing, Services etc).

They're all up breh

More demand (Fed Reserve induced) > supply = inflation

It is what it is

 

[Professor Emeritus]

And commodities are input to produce goods and services. You can check the Fed breh, they have other PPIs (Retail, Warehousing, Services etc).

They're all up breh

More demand (Fed Reserve induced) > supply = inflation

It is what it is

And literally all of those PPIs represent someone making money by getting paid those prices. That's the part you're skipping.

Corporations as a whole have been doing very, very well. Not every single corporation is profiting, but the net total are using the situation to benefit at the expense of the consumer.

 

[phcitywarrior]

And literally all of those PPIs represent someone making money by getting paid those prices. That's the part you're skipping.

Corporations as a whole have been doing very, very well. Not every single corporation is profiting, but the net total are using the situation to benefit at the expense of the consumer.

And again, this inflation was caused by the Federal reserve. That is the real culprit. I've never liked attaching blame where it isn't due because it doesn't solve the actual issue.

Commodities, production costs and transportation costs are up. The Fed and the US government induced a lockdown which slowed down production but they still kept consumer demand relatively high compared to supply capacity. That is going to cause inflation plain and simple.

When the Fed was saying it was going to be "transitory" many of us were calling cap. We are where we are today.

 

[DEAD7]

I wonder if Dems will honor any of their pledges to end fossil fuel subsidies...
...or will their base be satisfied with some 1% scapegoat.