Yeah. Corporations really only started doing this in the last 4 years. It has nothing to do with the unprecedented money printing.
We live in an ignorant society, thank you liberals for all your failed policies over the last hundred years. If it’s bad we can always blame somebody else for our failures.
If businesses could price gouge to make more money why didn’y they do it during the Trump Administration?
Man, y’all really don’t understand how the Federal Reserve, monetary systems, and Fiat currency work, start researching it you’ll be disappointed but you’ll have a better understanding of how we got here price-wise.
LOL the dem blame game continues.
“Corporations are now evil – they discovered the concept of ‘greed’ literally 4 years ago!!!! We hid that concept for so long and now they know about it and are using it against us!!!” – OP
Inflation isn’t simply rising prices. Lots of things can lead to rising prices, inflation is one of them.
It’s crazy how all corporations suddenly decided to start “price gouging” everyone just 4 years ago.
To a point. All about preserving margins otherwise stock or value goes down, ppl get fired and chaos insues
Govs blaming crypto for being pure air while they print much more in value.
The way to fix this is trust busting and better tax laws. Unfortunately the only people who could achieve this are bought and paid for by the corporations they need to be reigning in.
The unprecedented money printing was not a large factor since most of that money just funneled to the top shareholders of corporations. In order for it to exacerbate inflation it needs to circulate more. Also the St. Louis fed contributes 60% of inflation to corporate profiteering.
Funny how the price gouging happens at the same time the money supply explodes. Before that everyone was an angel.
Suddenly everyone started paying higher wages to weird…
Price gouging is certainly a part of it but there are many other macroeconomic variables in play. To just inflation has always been price gauging is naivete and misleading.
>The dominant view of inflation holds that it is macroeconomic in origin
and must always be tackled with macroeconomic tightening. In contrast,
we argue that the US COVID-19 inflation is predominantly a sellers’
inflation that derives from microeconomic origins, namely the ability of
firms with market power to hike prices. Such firms are price makers,
but they only engage in price hikes if they expect their competitors to
do the same. This requires an implicit agreement which can be
coordinated by sector-wide cost shocks and supply bottlenecks. We review
the long-standing literature on price-setting in concentrated markets
and survey earnings calls and compile firm-level data to derive a
three-stage heuristic of the inflationary process: (1) Rising prices in
systemically significant upstream sectors due to commodity market
dynamics or bottlenecks create windfall profits and provide an impulse
for further price hikes. (2) To protect profit margins from rising
costs, downstream sectors propagate, or in cases of temporary monopolies
due to bottlenecks, amplify price pressures. (3) Labor responds by
trying to fend off real wage declines in the conflict stage. We argue
that such sellers’ inflation generates a general price rise which may be
transitory, but can also lead to self-sustaining inflationary spirals
under certain conditions. Policy should aim to contain price hikes at
the impulse stage to prevent inflation from the onset.
16 comments
Yeah. Corporations really only started doing this in the last 4 years. It has nothing to do with the unprecedented money printing.
We live in an ignorant society, thank you liberals for all your failed policies over the last hundred years. If it’s bad we can always blame somebody else for our failures.
If businesses could price gouge to make more money why didn’y they do it during the Trump Administration?
Man, y’all really don’t understand how the Federal Reserve, monetary systems, and Fiat currency work, start researching it you’ll be disappointed but you’ll have a better understanding of how we got here price-wise.
LOL the dem blame game continues.
“Corporations are now evil – they discovered the concept of ‘greed’ literally 4 years ago!!!! We hid that concept for so long and now they know about it and are using it against us!!!” – OP
Inflation isn’t simply rising prices. Lots of things can lead to rising prices, inflation is one of them.
It’s crazy how all corporations suddenly decided to start “price gouging” everyone just 4 years ago.
To a point. All about preserving margins otherwise stock or value goes down, ppl get fired and chaos insues
Govs blaming crypto for being pure air while they print much more in value.
The way to fix this is trust busting and better tax laws. Unfortunately the only people who could achieve this are bought and paid for by the corporations they need to be reigning in.
The unprecedented money printing was not a large factor since most of that money just funneled to the top shareholders of corporations. In order for it to exacerbate inflation it needs to circulate more. Also the St. Louis fed contributes 60% of inflation to corporate profiteering.
Funny how the price gouging happens at the same time the money supply explodes. Before that everyone was an angel.
Suddenly everyone started paying higher wages to weird…
Price gouging is certainly a part of it but there are many other macroeconomic variables in play. To just inflation has always been price gauging is naivete and misleading.
>The dominant view of inflation holds that it is macroeconomic in origin
and must always be tackled with macroeconomic tightening. In contrast,
we argue that the US COVID-19 inflation is predominantly a sellers’
inflation that derives from microeconomic origins, namely the ability of
firms with market power to hike prices. Such firms are price makers,
but they only engage in price hikes if they expect their competitors to
do the same. This requires an implicit agreement which can be
coordinated by sector-wide cost shocks and supply bottlenecks. We review
the long-standing literature on price-setting in concentrated markets
and survey earnings calls and compile firm-level data to derive a
three-stage heuristic of the inflationary process: (1) Rising prices in
systemically significant upstream sectors due to commodity market
dynamics or bottlenecks create windfall profits and provide an impulse
for further price hikes. (2) To protect profit margins from rising
costs, downstream sectors propagate, or in cases of temporary monopolies
due to bottlenecks, amplify price pressures. (3) Labor responds by
trying to fend off real wage declines in the conflict stage. We argue
that such sellers’ inflation generates a general price rise which may be
transitory, but can also lead to self-sustaining inflationary spirals
under certain conditions. Policy should aim to contain price hikes at
the impulse stage to prevent inflation from the onset.