Anyone not smelling their own farts can tell
You that, but how do you stop it while staying competitive? Frankly I don’t see a solution that works outside of EU
As the article says, opportunistic price rises by corporations are a MUCH bigger factor in current inflation than historical payrises of 4%:
> Analysis by the Unite union of Britain’s largest 350 companies revealed a similar trend – profit margins were 73% higher in 2021 than 2019. “Even though sales were down in 2021, profits still rocketed,” said the union’s general secretary, Sharon Graham. “Even removing energy companies from the tally, average profit margins still jumped an astonishing 52%.”
> what we have seen is that profits are skyrocketing, which means that companies have increased prices by more than cost. In the earnings reports, companies have bragged about how they have managed to be ahead of the inflation curve, how they have managed to jack up prices more than their costs and as a result have delivered these record profits.
QE and record low interest rates, ie. Bank of England policy, are big drivers of inflation.
They’ve left the multimillionaires and billionaires rolling in it, and the rest of us struggling to survive.
Those receiving record pay increases are those at the top of companies. There might be fewer of them but they are able to justify huge pay rises, bonuses and dividend payouts, while those who help generate that profit are forced to see their wages become worth less due to inflation. Besides, what happens when ordinary people are priced out of living? We are already seeing shops reporting a decrease in their usual Christmas spending. What happens when fuel prices go up again in April? What happens when food prices continue to rise? Companies want profit but are doing all they can to stop the working class from participating in the economy. There will be an endpoint where capitalism breaks once too many people have nothing.
We made 40 million in profit this year, if we don’t make 50 million next year we’ve failed our shareholders/CEO’s.
Growth for its own sake is literally the mentality of cancer.
Lets also not forget, they’ve also shrank food sizes as well, while raising the price, that’s the one that gets me
Many people don’t pay for what they can afford , many are going into debt to afford what they need.
100%.. more profits means people need more money, which means people need paying more, which means other companies have to charge more to pay more, which means people need more money, which means other companies have to charge more to pay more… goes on really.
How about transparent profits and tax payments, and windfall taxes on excessive profits
Higher pay rates for employees, improves the spend in the local economy, and supports both rates and tax revenues.
Otherwise profits largely end up wherever the shareholders reside – across the planet.
I can’t imagine the cries when McDonald’s do a price increase…
Can we get an economic greed graph going? Top 500 companies sucking the wealth out of the economy and giving it to a handful of people or diverting those profits to invest overseas.
This is cute
“These figures underpin soaring executive pay last year and this, and the return of the bumper City bonus. More fundamentally, it suggests that Hunt and Bailey – the two most senior policymakers in this area – misunderstand business dynamics and how firms are taking advantage of a crisis to ramp up prices.”
Misunderstand? Yeah…or not so much of course
IT’S NOT A PAY DEMAND!! This government is trying to instate a gig economy. No sick pay. Zero hours. Enforced redundancies. IT IS NOT A PAY DEMAND.
I’m not sure what they expected to happen to inflation after a decade and a half of near zero interest rates and massively debasing our currency.
If you want to reduce profits of oil and gas companies you should maximise supply. Europe has taken precisely the opposite approach then gets mad when profits go up. As long as Europe is going in hard on weather energy this will continue to happen.
Wow it’s almost like a late stage capitalism model based on endless growth isn’t sustainable? Who would of thought?!
My company gave £7m to its shareholders this year. Yet “can’t” afford to give us a pay rise. Absolutely ridiculous. If I was a shareholder, I’d be screaming at them that it’s more sustainable to give pay rise to keep staff and avoid strikes in the long term.
The executives make record profit over a decade, collect a beautiful retirement package, and escape all backlash as a new management arrives…
I’ve been saying this for months, and been downvoted for saying so, but inflation has two sources, wages and prices.
Prices have gone up dramatically and, in some areas, so have profits… Meaning the prices didn’t need to go up.
It’s sickening, and it will only get worse.
Between the useful excuses of brexit/covid/inflation these fuckers are bleeding the people dry.
How about the government stop taxing the shit out of everyone so we actually have some disposable income?
They are trying to make a quick cash grab and lower prices next year slowly and that is why they don’t want the pay rises, then the higher costs will have to remain which will overall lead to further inflation.
Every yearly general staff meeting the visiting regional grand poobah woul extol the necessity for double-digit (>10%) bottom-line growth. It’s against the laws of physics.
One would imagine that the Guardian would be supportive of a party who proposed fairer pay and taxation of high profits, yet here we are.
it always has been, and they pay the media to change the narrative to point the blame to “scroungers” & “Immigrants”
This trajectory is ridiculously unsustainable. When did utter contempt for those who genuinely sacrifice in their work become the norm?
The big numbers in the banks of shareholders will mean nothing if everyone who dares to work a job that maintains the country’s infrastructure, public services, education and healthcare can’t afford a roof over their heads. I hope these leeches have budgeted for private militia because they may well need one the way things are going.
I work for a fairly large firm, owned by an even larger global blue chip company. The company performed a share buy back of nearly a billion dollars worth of shares earlier this year. We were sent a newsletter informing us of the fact, and that year on year profits were the highest they’ve ever been. Fast forward to now, we’re facing redundancies in my work place, this first wave of redundancies will see staff laid off a few days before Christmas. Pay talks in January will be unlikely to go ahead. But as long as the shareholders received their record dividend payments and the company execs receive their huge bonuses then all is well with the world!
World banks
Energy Tycoons
Pharmacuticles. = Inflation
Treasuries
National Bank
Cunts in power
The leaders of these companies are money drunk,
They are blinded by their own greed.
They can’t see the destruction an the pain they cause because they barrier themselves in their own little world’s.
And f the Numbers aren’t right at their end, they will correct those numbers in their favour.
Regardless of the impact on the common peasant!
How could it be pay claims when they aren’t being paid it?
Reality is it is many things, one of them is profits, but most of it is just inefficiencies literally voted for in the form of Brexit, as well as issues caused by COVID and Ukraine.
All that is really happening is the unsustainable Ponzi scheme that is Conservative ideology is collapsing, this has however been happening for a decade it is just the electorate of this country are too stupid to notice.
it’s a shame that so many people are brainwashed into not realising this.
Sometimes I want to run for Prime minister and actually sort this mess out
It’s no good trying to blame the workers, the Putin or the COVID anymore. It was the brexit what done it, along with all those who profiteered off the pandemic.
When you’re cutting your staff just to post ANOTHER year of record profits – and that’s roundly considered a success…….you know it’s gone too far
The problem with too many sectors at the moment. It’s not good enough to be able to pay your own bills, pay all of your employees a healthy wage, have enough money to run maintenance, have enough money to expand, and have enough money should the business run into any problems.
It’s not enough to have all that security. When will it be enough? Never. And since it will never be enough. There needs to be some new governing rules to encourage healthier business attitudes.
35 comments
Anyone not smelling their own farts can tell
You that, but how do you stop it while staying competitive? Frankly I don’t see a solution that works outside of EU
As the article says, opportunistic price rises by corporations are a MUCH bigger factor in current inflation than historical payrises of 4%:
> Analysis by the Unite union of Britain’s largest 350 companies revealed a similar trend – profit margins were 73% higher in 2021 than 2019. “Even though sales were down in 2021, profits still rocketed,” said the union’s general secretary, Sharon Graham. “Even removing energy companies from the tally, average profit margins still jumped an astonishing 52%.”
Similarly, Here is economics professor Isabella Weber talking about [corporate greed](https://www.npr.org/2022/02/13/1080494838/economist-explains-record-corporate-profits-despite-rising-inflation) in the US, although I expect the comments largely apply here also.
> what we have seen is that profits are skyrocketing, which means that companies have increased prices by more than cost. In the earnings reports, companies have bragged about how they have managed to be ahead of the inflation curve, how they have managed to jack up prices more than their costs and as a result have delivered these record profits.
QE and record low interest rates, ie. Bank of England policy, are big drivers of inflation.
They’ve left the multimillionaires and billionaires rolling in it, and the rest of us struggling to survive.
Those receiving record pay increases are those at the top of companies. There might be fewer of them but they are able to justify huge pay rises, bonuses and dividend payouts, while those who help generate that profit are forced to see their wages become worth less due to inflation. Besides, what happens when ordinary people are priced out of living? We are already seeing shops reporting a decrease in their usual Christmas spending. What happens when fuel prices go up again in April? What happens when food prices continue to rise? Companies want profit but are doing all they can to stop the working class from participating in the economy. There will be an endpoint where capitalism breaks once too many people have nothing.
We made 40 million in profit this year, if we don’t make 50 million next year we’ve failed our shareholders/CEO’s.
Growth for its own sake is literally the mentality of cancer.
Lets also not forget, they’ve also shrank food sizes as well, while raising the price, that’s the one that gets me
Many people don’t pay for what they can afford , many are going into debt to afford what they need.
100%.. more profits means people need more money, which means people need paying more, which means other companies have to charge more to pay more, which means people need more money, which means other companies have to charge more to pay more… goes on really.
How about transparent profits and tax payments, and windfall taxes on excessive profits
Higher pay rates for employees, improves the spend in the local economy, and supports both rates and tax revenues.
Otherwise profits largely end up wherever the shareholders reside – across the planet.
I can’t imagine the cries when McDonald’s do a price increase…
Can we get an economic greed graph going? Top 500 companies sucking the wealth out of the economy and giving it to a handful of people or diverting those profits to invest overseas.
This is cute
“These figures underpin soaring executive pay last year and this, and the return of the bumper City bonus. More fundamentally, it suggests that Hunt and Bailey – the two most senior policymakers in this area – misunderstand business dynamics and how firms are taking advantage of a crisis to ramp up prices.”
Misunderstand? Yeah…or not so much of course
IT’S NOT A PAY DEMAND!! This government is trying to instate a gig economy. No sick pay. Zero hours. Enforced redundancies. IT IS NOT A PAY DEMAND.
I’m not sure what they expected to happen to inflation after a decade and a half of near zero interest rates and massively debasing our currency.
https://www.reddit.com/r/ROI/comments/zmnmnm/this_is_how_we_the_imperialist_west_voted_on_a_un/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
If you want to reduce profits of oil and gas companies you should maximise supply. Europe has taken precisely the opposite approach then gets mad when profits go up. As long as Europe is going in hard on weather energy this will continue to happen.
Wow it’s almost like a late stage capitalism model based on endless growth isn’t sustainable? Who would of thought?!
My company gave £7m to its shareholders this year. Yet “can’t” afford to give us a pay rise. Absolutely ridiculous. If I was a shareholder, I’d be screaming at them that it’s more sustainable to give pay rise to keep staff and avoid strikes in the long term.
The executives make record profit over a decade, collect a beautiful retirement package, and escape all backlash as a new management arrives…
I’ve been saying this for months, and been downvoted for saying so, but inflation has two sources, wages and prices.
Prices have gone up dramatically and, in some areas, so have profits… Meaning the prices didn’t need to go up.
It’s sickening, and it will only get worse.
Between the useful excuses of brexit/covid/inflation these fuckers are bleeding the people dry.
How about the government stop taxing the shit out of everyone so we actually have some disposable income?
They are trying to make a quick cash grab and lower prices next year slowly and that is why they don’t want the pay rises, then the higher costs will have to remain which will overall lead to further inflation.
Every yearly general staff meeting the visiting regional grand poobah woul extol the necessity for double-digit (>10%) bottom-line growth. It’s against the laws of physics.
One would imagine that the Guardian would be supportive of a party who proposed fairer pay and taxation of high profits, yet here we are.
it always has been, and they pay the media to change the narrative to point the blame to “scroungers” & “Immigrants”
This trajectory is ridiculously unsustainable. When did utter contempt for those who genuinely sacrifice in their work become the norm?
The big numbers in the banks of shareholders will mean nothing if everyone who dares to work a job that maintains the country’s infrastructure, public services, education and healthcare can’t afford a roof over their heads. I hope these leeches have budgeted for private militia because they may well need one the way things are going.
I work for a fairly large firm, owned by an even larger global blue chip company. The company performed a share buy back of nearly a billion dollars worth of shares earlier this year. We were sent a newsletter informing us of the fact, and that year on year profits were the highest they’ve ever been. Fast forward to now, we’re facing redundancies in my work place, this first wave of redundancies will see staff laid off a few days before Christmas. Pay talks in January will be unlikely to go ahead. But as long as the shareholders received their record dividend payments and the company execs receive their huge bonuses then all is well with the world!
World banks
Energy Tycoons
Pharmacuticles. = Inflation
Treasuries
National Bank
Cunts in power
The leaders of these companies are money drunk,
They are blinded by their own greed.
They can’t see the destruction an the pain they cause because they barrier themselves in their own little world’s.
And f the Numbers aren’t right at their end, they will correct those numbers in their favour.
Regardless of the impact on the common peasant!
How could it be pay claims when they aren’t being paid it?
Reality is it is many things, one of them is profits, but most of it is just inefficiencies literally voted for in the form of Brexit, as well as issues caused by COVID and Ukraine.
All that is really happening is the unsustainable Ponzi scheme that is Conservative ideology is collapsing, this has however been happening for a decade it is just the electorate of this country are too stupid to notice.
it’s a shame that so many people are brainwashed into not realising this.
Sometimes I want to run for Prime minister and actually sort this mess out
It’s no good trying to blame the workers, the Putin or the COVID anymore. It was the brexit what done it, along with all those who profiteered off the pandemic.
When you’re cutting your staff just to post ANOTHER year of record profits – and that’s roundly considered a success…….you know it’s gone too far
The problem with too many sectors at the moment. It’s not good enough to be able to pay your own bills, pay all of your employees a healthy wage, have enough money to run maintenance, have enough money to expand, and have enough money should the business run into any problems.
It’s not enough to have all that security. When will it be enough? Never. And since it will never be enough. There needs to be some new governing rules to encourage healthier business attitudes.