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Drudge Retort: The Other Side of the News
Wednesday, January 12, 2022

In the second year of a pandemic that began by wiping out 20 million jobs, American workers are doing surprisingly well. It's just that American business is doing even better. In the past two quarters, U.S. corporations outside of the finance industry posted their fattest margins since 1950 -- one reason why stock markets keep hitting all-time highs. On earnings calls, plenty of executives complained about the squeeze from rising costs of labor as well as materials. But overall, profits were up 37% from a year earlier, according to data out last week from the Commerce Department.

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Businesses are using "inflation" as an excuse to jack up prices to buy back corporate stock and declare record profits and dividends.

Most people are too dumb to see through the baloney.

#1 | Posted by Nixon at 2022-01-12 11:50 AM | Reply

Inflation is the end result of the treasury printing more and more money out of thin air. How many "quantitative easings" did we go through during the Obama years (I'm not blaming Obama for QE). This was a long time in coming and it's due to terrible monetary and fiscal policies.

#2 | Posted by BellRinger at 2022-01-12 12:02 PM | Reply | Funny: 1

#1 | POSTED BY NIXON

This is a fun theory ... but doesn't explain commodity inflation.
www.in2013dollars.com

Also what does "up 37%" actually mean? Revenue? Of course its up, inflation in some sectors is almost 40%.

Keep trying, its interesting watching posters on this site try to excuse Government spending increases. Not to say I don't empathize with the workers, I do. But lets put the blame for their strife where it belongs, Republican and Democrat spending.
www.cato.org

Bottom line an increase in Dollars for the same goods allows companies to raise prices, but also requires them to pay more in COGs.

We should of course adjust min wages to combat the government spending inflation.
This of course, changes the #FightFor15 to #FightFor25

#SlowUSSpending
#FightFor25

#3 | Posted by oneironaut at 2022-01-12 12:08 PM | Reply | Funny: 1

what exactly is the article claim is being "debunked"?

#4 | Posted by eberly at 2022-01-12 01:14 PM | Reply

-Businesses are using "inflation" as an excuse to jack up prices to buy back corporate stock and declare record profits and dividends.

businesses are jacking up prices because they can. Period. Excuses are just PR and what they do with the profits doesn't matter.

they raise prices when they can. It's not more complicated than that.

#5 | Posted by eberly at 2022-01-12 01:16 PM | Reply

Shocked. I am shocked.

#6 | Posted by HeliumRat at 2022-01-12 07:06 PM | Reply

The corporate green meme is just a product of the desperation the Biden admin is finding itself in on economic polling. We're stuck with the inflation from the long build up of debt followed by the rapid accrual of Covid liabilities for quite some time. Just Covid added $13.6 trillion of combined federal spending, tax cuts, loans, grants, and subsidies. $0.9 by Administrative Action, $5.7 trillion from Congress, $7 trillion from the Federal Reserve. 70% of it has already been spent.

Those chickens do come home to roost eventually.

#7 | Posted by sitzkrieg at 2022-01-13 11:14 AM | Reply

There's a massive disconnect between the Corporate Green narrative people want to push defensively, and the inflation people are finding at grocery stores that run on very narrow margins.

Elizabeth Warren Blames High Food Prices on Grocery Chains' 'Record' 1 Percent Profit Margins

"Grocery stores consistently have among the lowest profit margins of any economic sector. According to data compiled this month by New York University finance professor Aswath Damodaran, the entire retail grocery industry currently averages barely more than 1 percent in net profit. In its most recent quarter, Kroger reported a profit margin of 0.75 percent, during a time in which Warren claims that the chain was "expanding profits" due to its "market dominance."

"In actuality, for much of the last year, grocery stores have seen enormous boosts in revenue, but not increased profitability, for the simple reason that everything has been costing more: not just products, but transportation, employee compensation, and all the extra logistical steps needed to adapt to shopping during a pandemic. Couple that with persistent inflation"which Warren also recently blamed on "price gouging""and it is no wonder that things seem a bit out of balance."

#8 | Posted by sitzkrieg at 2022-01-13 11:18 AM | Reply

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