CANON_Grow
Well-Known Member
(Moving response to a different thread)
Greedflation would be the most accurate IMO.
In a speech this summer, Christine Lagarde cited data from the European Central Bank she leads showing that for the 20 years leading up to 2022, corporate profits were responsible for about one-third of inflation.
Last year, however, that ratio jumped to two-thirds, which means that despite legitimate increases in their cost of doing business, their take-home share of every consumer dollar effectively doubled.
...
Data from the U.S. shows evidence that price increases may have gotten ahead of themselves, too. A report by the Federal Reserve Bank of Kansas City calculated that markups increased by 3.4 per cent in the U.S. in 2021 — enough to make them responsible for as much as half the increase in the U.S. inflation rate that year.
...
He cites data from Statistics Canada showing that at one point last year, the cost of a unit of labour had increased by a little more than 10 per cent since the start of the pandemic. The per-unit profit, meanwhile, was up by more than 70 per cent over that same time frame.
But the good news, Stanford says, is that trend is starting to reverse.
