Author Topic: Half of recent US inflation due to high corporate profits, report finds  (Read 1789 times)

rcjordan

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ergophobe

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Re: Half of recent US inflation due to high corporate profits, report finds
« Reply #1 on: January 19, 2024, 05:39:14 PM »
This is basically a consequence of economic concentration, is it not?

In an economy dominated by monopoly, companies do not have to reduce prices in the face of competition.

The other aspect is price anchoring. We get used to Z costing Y and so we pay it or go without.

rcjordan

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Re: Half of recent US inflation due to high corporate profits, report finds
« Reply #2 on: January 19, 2024, 07:31:46 PM »
> a consequence of economic concentration

Yes. Good point.  And the cost of starting a competitive company or even a competitive division within an existing company adds a buffer to Bezos' "Your margin in my opportunity."  Secondly, it seems that domestic companies don't compete on price much anymore but want to take marketshare at or near the established high price.

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Decoupling from China has had an insulating effect on prices and margins, Debbie says.
« Last Edit: January 19, 2024, 07:33:19 PM by rcjordan »