Joe Biden left a mark on the Extreme Right last night! (Page 14): Please tell us ( other than commodities such as oil) when prices have ever returned to pre inflationary period lows.

DennyT Loc: Central Missouri woods

FrumCA wrote:

Sticking to the topic of inflation and wages, you ... (show quote)

Please tell us ( other than commodities such as oil) when prices have ever returned to pre inflationary period lows.

FrumCA

McKinneyMike wrote:

Look at corporate profits soaring by 53% since the start of the p******c. Any thoughts on how these profits got so high? Price increases over and above what was required to maintain operations resulting in this windfall.

Blame Biden all you want, but the cost of goods to consumers have been artificially inflated to produce this astronomical spike in profits and is reflected in the inflation numbers!

Some lawmakers will tell you that high corporate profits drive inflation. On the other hand, economists tell you that it's inflation that boosts company profits. I trust the economist's viewpoint over lawmakers. During the C****-** p******c, supply chain disruptions and later Russia’s war in Ukraine led to rising prices. Simultaneously, wages did not increase as rapidly. For companies, higher prices combined with steady labor costs resulted in increased profits.
Buoyed by the government p******c stimulus payments, Americans could afford the higher prices, reducing the incentive for companies to lower them. This info is a little dated, but the concept hasn't changed. https://www.npr.org/2022/02/13/1080494838/economist-explains-record-corporate-profits-despite-rising-inflation

McKinneyMike Loc: Texas

T***h Seeker wrote:

All I could think of was how many times he s**t and pissed his pants in the duration of the speech.

You would need to see Dystopian Donald with regards to bowel issues..... He seems to crap himself far more than most it seems from photos.

wilpharm Loc: Oklahoma

Triple G wrote:

I don't sugar coat anything as you well know. I'd... (show quote)

3% inflation...you have got to be kidding....believe what you wish

FrumCA

Triple G wrote:

Your figures aren't current - my argument is that ... (show quote)

The figures are current as of Feb 2024.

DennyT Loc: Central Missouri woods

Triple G wrote:

Effate confirmed as much with stating how well Dav... (show quote)

Actual data

https://www.macrotrends.net/stocks/charts/GIS/general-mills/profit-margins

https://www.google.com/search?q=general+mills+net+profit+margin&client=safari&sca_esv=1895c9f6073d5159&sca_upv=1&channel=iphone_bm&sxsrf=ACQVn08u1tG49GMCXYJJOJbSFYRzDxfD8g%3A1710085616571&source=hp&ei=8NXtZdbIH6yYptQPmdKO2A8&oq=genersl+mills+net+profi&gs_lp=EhFtb2JpbGUtZ3dzLXdpei1ocCIXZ2VuZXJzbCBtaWxscyBuZXQgcHJvZmkqAggBMgcQABiABBgNMgYQABgWGB4yBxAhGAoYoAEyBxAhGAoYoAEyCxAAGIAEGIoFGIYDMgsQABiABBiKBRiGAzILEAAYgAQYigUYhgMyCxAAGIAEGIoFGIYDSPXXAVCACFj8VnABeACQAQOYAYxxoAGyrwOqAQM5LTS4AQHIAQD4AQGYAgKgAsFnqAIQwgIGELMBGIUEwgIQEAAYAxiPARjlAhjqAhiMA5gDGuIDBBgBIGiSBwUxLjktMaAH-x0&sclient=mobile-gws-wiz-hp

Triple G

FrumCA wrote:

Some lawmakers will tell you that high corporate p... (show quote)

I don't believe it's an either or proposition. They feed each other in a circular fashion. The tax relief during trump years has changed the impact of profits on inflation.

https://www.npr.org/2023/05/19/1177180972/economists-are-reconsidering-how-much-corporate-profits-drive-inflation

However, I agree with the different variables involved in inflation calculations. There is a lag in wage to inflation catch up and raising wages too quickly can be inflationary by itself, but companies have put shareholders and top management over employees since they got their tax cuts. I believe they've gotten too greedy and should be lowering prices and increasing wages. But, there's no good way to calculate the point where the "greed" line has been crossed.

If you were to ask the average American during C***d if they would still want stimulus and child tax breaks to make ends meet even though it may increase inflation, what do you think the answer would be? I don't think anyone correctly predicted the chaos that supply chain disruptions would have. But, the US is at the mercy of global commodities and other goods markets and I don't be see USA being able to 100% mitigate that.

Truth Seeker Loc: High Mountains of the Western US

wilpharm wrote:

3% inflation...you have got to be kidding....believe what you wish

They don't tell you it is 3% on top of what was already a record hike in inflation.

Triple G

wilpharm wrote:

3% inflation...you have got to be kidding....believe what you wish

Let's see what the calculation is in a couple of days

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

FrumCA

Triple G wrote:

Let's see what the calculation is in a couple of days

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

FrumCA

Triple G wrote:

I don't believe it's an either or proposition. Th... (show quote)

Interesting article. Thanks. I'm probably oversimplying the scenario but the message seems to be as wages go up, costs go up. Demands for wage increases such as the $20 per hour for unsk**led labor in some sectors (i.e., fast food/retai) caused many of those businesses to either close or cut employees in order to stay profitable. Factoring in your stimulus scenario I'm not sure what the folks receiving the stimulus would do. I don't know how they think. I do know many of them left the workforce because the stimulus paid more. And, predictably, when they needed to go back to work, the businesses were no longer there.

DennyT Loc: Central Missouri woods

FrumCA wrote:

Interesting article. Thanks. I'm probably oversimplying the scenario but the message seems to be as wages go up, costs go up. Demands for wage increases such as the $20 per hour for unsk**led labor in some sectors (i.e., fast food) has caused many of those businesses to either close or cut employees on order to stay profitable.

Labor accounts for 30% of operating cost So figure it out how many steps are in a product before it reaches the shelve at 30% operating cost. And then cheer on minimum wages

Triple G

FrumCA wrote:

Interesting article. Thanks. I'm probably oversimplying the scenario but the message seems to be as wages go up, costs go up. Demands for wage increases such as the $20 per hour for unsk**led labor in some sectors (i.e., fast food) has caused many of those businesses to either close or cut employees on order to stay profitable.

It's a micro vs macro scenario. Fast food places here are chasing a finite set of workers who move down the street for better pay. For each turnover, the employer loses 3-6 months productivity. They're at $16/hr now and still going up. They go out of business if they don't have help, but lose profits when they pay to keep workers. That will settle down in time as employers learn that treating employees as value added rather than t***sitory t***sactional costs. Getting additional workforce for those jobs would be helpful too.

DennyT Loc: Central Missouri woods

Triple G wrote:

It's a micro vs macro scenario. Fast food places ... (show quote)

Macdonald labor burden is around 20% . Do the math on a dollar menu item

Triple G

DennyT wrote:

Macdonald labor burden is around 20% . Do the math on a dollar menu item

If Portillos can do it, so can others. Sounds like some are already pricing in the possible increase in minimum wage.

https://www.restaurantdive.com/news/california-20-dollar-fast-food-wage-poses-risk-and-reward-restaurant-execs-icr/705317/