How ‘Excuseflation’ Is Keeping Prices — and Corporate Profits — High

[Wild self]

There was an article in the Times recently about businesses across the board becoming "gentrified", along these lines. They are just going to raise and run with the raises, there's not going to be any return to normal, in many instances.

Is the Entire Economy Gentrifying? (Published 2023)

Companies are trying to maintain fat profits as the economy changes, making “premiumization” their new favorite buzzword.

www.nytimes.com

Reading what was posted here more closely, it tracks almost exactly.

I think this all stems from Trump losing in 2020. A lot of these companies that gotten huge tax breaks from Trump are about to pay for it in Biden's new proposal.

 

[Godless Socialist CEO]

We still got folks on this board who don’t fukking get it

@Ed MOTHERfukkING G

Come join us

 

[Godless Socialist CEO]

I said this countless times, but TLR just screams "inflation"

You and me both called this shyt a while ago. Progressives have seen this song and dance mind you I work finance and have people trying to tell me otherwise about this shyt.

Mind you, that’s fukking Bloomberg calling these people out. When you’ve lost the blood capitalist section of the media you’re probably doing some egregious shyt in order for them to call you put

 

[Ed MOTHERFUCKING G]

Both things can be right I literally see the P&L of middle market businesses every day for a career and saw profit margins dip YOY and on a TTM, and COGS and overhead increase dramatically.

When relief comes however, they KEEP THE NEW MARGIN. that isn't 'right' but it is. saying that inflation is real doesn't mean 'excuseflation' is not real. They both exist.

 

[Macallik86]

in the podcast that article is based on Companies Are Telling Us the Real Reason They're Still Raising Prices - Odd Lots

the economists were laughing at target for not pursuing a price over volume strategy. i don't shop at target, but i will start now because i can't reward their competitors blatantly robbing the consumer.

Didn't post the podcast since it doesn't seem to be Coli's medium of choice, but I'm a fan of the podcast and this was one of their best so far. It was interesting hearing them tie some of the business practices as a whole to trends they've heard from prior guests who were business owners (chicken farmer, baker, etc).

I appreciate that they can do a deep dive into something obscure like trucking law and then switch it up with some inside industry talk like an explainer on banks borrowing from the Feds or why economists dislike full employment for a nation.

Back to this episode specifically, I think the interesting/scary thing is that the Earnings Reports show that these companies are already buying less goods/services and so it's basically accounting chicanery that is making lower sales seem more palatable but If/when there's a large downturn in the market, their lack of sales will be exacerbated by their relatively high costs. Maybe it's old age, but there's some social venues I just don't go to anymore because of how irrational their asking prices are. I guess there are definitely people willing to pay it, but that explains why credit card debt limits are at all-time highs.

 

[Geek Nasty]

We've been calling it "greedflation" for probably 2 years now