Massive supply chain disruptions during the COVID-19 pandemic have fed into inflation with long lags, say Robin Brooks, Peter R. Orszag, and William E. Murdock III.
So we’re supposed to believe that the highest corporate profits in more than 70 years are not a primary driver of inflation? I don’t buy it and neither do all economists.
It is unlikely that either the extent of corporate greed or even the power of corporations generally has increased during the past two years. Instead, the already-excessive power of corporations has been channeled into raising prices rather than the more traditional form it has taken in recent decades: suppressing wages.
Corporations have such excessive power that they can even push the narrative that their historic profits don’t have anything to do with inflation. Some people actually believe the propaganda.
I don’t think you read this article correctly… They say inflation was driven by a combination of factors, including the one the brookings article says is the primary driver. All 3 articles (Brookings, Reuters, and epi) agree more than you are presenting. EPI says corporate profits have abnormally contributed to inflation, not that they are a primary driver.
In short, the rise in inflation has not been driven by anything that looks like an overheating labor market—instead it has been driven by higher corporate profit margins and supply-chain bottlenecks.
Your link does not support your claims and does not refute the ideas presented in any article here, as you seem to want (I also don’t know who is saying all economists think something…)
Profit margins may not be telling us that very recent increases in corporate power are the root cause of inflation. But they are telling us that a simple macroeconomic imbalance of supply and demand is not driving inflation either, unless the relationship between a “hot” economy and profit margins and real wages is just coincidentally behaving entirely differently in the current recovery than it has in the past.
So we’re supposed to believe that the highest corporate profits in more than 70 years are not a primary driver of inflation? I don’t buy it and neither do all economists.
Corporations have such excessive power that they can even push the narrative that their historic profits don’t have anything to do with inflation. Some people actually believe the propaganda.
I don’t think you read this article correctly… They say inflation was driven by a combination of factors, including the one the brookings article says is the primary driver. All 3 articles (Brookings, Reuters, and epi) agree more than you are presenting. EPI says corporate profits have abnormally contributed to inflation, not that they are a primary driver.
Your link does not support your claims and does not refute the ideas presented in any article here, as you seem to want (I also don’t know who is saying all economists think something…)