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Record profits drive inflation
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this post was submitted on 14 Jan 2024
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Antiwork
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It's even worse: corporate profits are driving price inflation.
Proper Inflation sees both prices and salaries go up, so isn't all that bad for most people (unless it goes all the way to hyperinflation) because people aren't actually losing purchasing power as they do with just price inflation.
Came here to say this too, so I hope it's okay if I elaborate.
Politicians and corporations love to conflate cost of living increases with inflation. Not every price increase is due to inflation. Only price increases that are due to increased customer buying power are inflation. Taxes don't 'drive inflation' they slow it, because they reduce customer buying power. Taxes DO increase cost of living (if they aren't used to fund services that reduce cost of living).
Corporations love to point at price increases and just 'inflation'. Politicians love to say
When sure maybe inflation is just 5% but total cost of living has gone up much more, which is the actual problem.
Inflation typically only hurts people on fixed incomes. Hyper inflation, where inflation is so severe that markets can't set prices and people lose faith in money altogether, is obviously a problem but it takes a lot more inflation than what we're seeing.