Greedflation?

[lpetrich]

‘Greedflation’ Is Real—and Probably Good for the Economy - WSJ -- "Companies have used inflation as excuse for big price increases, first-quarter earnings suggest"

That's the Wall Street Journal. Good for "The Economy"???

 

[Politesse]

When the WSJ calls something "good for the economy", you know whose coffers are filling up.

 

[Jason Harvestdancer]

Greedflation refers to price increases not caused by increases in costs. It is either ignorant or naive to think such price increases are a new phenomenon. It occurs because people are human. Now if you wish to discuss that observation instead of some mistaken pedantic derail, I will engage. Otherwise, no.

People would have a higher opinion of you if you could admit when you're wrong.

 

[bilby]

People would have a higher opinion of you if you could admit when you're wrong.

That's excellent advice. But it first requires that someone recognise that they are wrong. And some people here (and indeed, most people everywhere) are truly dreadful at that particular skill.

Anyone who subscribes to a poorly thought through or internally contradictory philosophy in the long term is likely to fail to recognise when they themselves are wrong, even while they believe themselves expert in recognising when others are wrong.

Internally contradictory philosophies, such as Christianity, or Islam, and poorly thought through philosophies, such as Libertarianism, or Objectivism, are extremely pernicious.

 

[Jarhyn]

People would have a higher opinion of you if you could admit when you're wrong.

That's excellent advice. But it first requires that someone recognise that they are wrong. And some people here (and indeed, most people everywhere) are truly dreadful at that particular skill.

Anyone who subscribes to a poorly thought through or internally contradictory philosophy in the long term is likely to fail to recognise when they themselves are wrong, even while they believe themselves expert in recognising when others are wrong.

Internally contradictory philosophies, such as Christianity, or Islam, and poorly thought through philosophies, such as Libertarianism, or Objectivism, are extremely pernicious.

Objectivism has the doubly black mark on it insofar as it is not objective, but rather based on the explicit subjectivity of personal exceptionalism, AND it takes from any actual objective thinker the power to call their philosophy "objectivism".

It is selfishness crafted into a sophisticated smokescreen to hide the selfishness much like a billionaire hides their wealth from the IRS.

 

[Jason Harvestdancer]

Wow. No reference to source material here.

 

[laughing dog]

Greedflation refers to price increases not caused by increases in costs. It is either ignorant or naive to think such price increases are a new phenomenon. It occurs because people are human. Now if you wish to discuss that observation instead of some mistaken pedantic derail, I will engage. Otherwise, no.

People would have a higher opinion of you if you could admit when you're wrong.

Anyone have any functioning irony meters after that howler?

You should be able to point out any errors. To date, you have not, so why should anyone take your opinion seriously?

 

[Jason Harvestdancer]

Greedflation refers to price increases not caused by increases in costs. It is either ignorant or naive to think such price increases are a new phenomenon. It occurs because people are human. Now if you wish to discuss that observation instead of some mistaken pedantic derail, I will engage. Otherwise, no.

People would have a higher opinion of you if you could admit when you're wrong.

Anyone have any functioning irony meters after that howler?

You should be able to point out any errors. To date, you have not, so why should anyone take your opinion seriously?

If you had written the exact opposite people might think better of you.

 

[Jarhyn]

Greedflation refers to price increases not caused by increases in costs. It is either ignorant or naive to think such price increases are a new phenomenon. It occurs because people are human. Now if you wish to discuss that observation instead of some mistaken pedantic derail, I will engage. Otherwise, no.

People would have a higher opinion of you if you could admit when you're wrong.

Anyone have any functioning irony meters after that howler?

You should be able to point out any errors. To date, you have not, so why should anyone take your opinion seriously?

If you had written the exact opposite people might think better of you.

No, we wouldn't. I would think worse of him if he had said the opposite. I can't be alone there.

 

[laughing dog]

If you had written the exact opposite people might think better of you.

Nah. Still waiting for you to point out the errors. At least I have learned from history not to hold my breath.

 

[Jason Harvestdancer]

If you had written the exact opposite people might think better of you.

Nah. Still waiting for you to point out the errors. At least I have learned from history not to hold my breath.

I already pointed out "greed" and "greeflation" are not synonyms and you are using them as such, so of course you haven't seen it. You can't continue to say I haven't posted it if you acknowledge I have. The ironic thing is you quoted the very post you are pretending doesn't exist.

Your posting might be better if you were to hold your breath.

 

[laughing dog]

I already pointed out "greed" and "greeflation" are not synonyms and you are using them as such, so of course you haven't seen it. You can't continue to say I haven't posted it if you acknowledge I have.

. You are mistaken - I did not use “greed” and “greedflation” as synonyms” as I previously explained. I admit I mistakenly thought you had an actual error to sow instead of yet another instance of poor reading comprehension on your part.

 

[Jason Harvestdancer]

I already pointed out "greed" and "greeflation" are not synonyms and you are using them as such, so of course you haven't seen it. You can't continue to say I haven't posted it if you acknowledge I have.

. You are mistaken - I did not use “greed” and “greedflation” as synonyms” as I previously explained.

Um, yes you did. You exactly did. Admit your mistake and move on.

 

[Derec]

I said that more than a year ago. When I said raising interest rates on everyone wasn't the cure because it doesn't address the problem, some of the more conservative members here pooh poohed the idea. But here we are, still under the grip of inflation.

Yes, this claim has been made before, and not just by you. But if rasining interest rates is no the way to address the problem of inflation, what prescription does Dr. ZiprHead have? Maybe price controls?

The idea of blaming "greed" for inflation is reversing cause and effect. Increased corporate profits are not cause of the inflation, but a consequence of it. The Pandemic led the federal government to issue a lot of fiscal stimulus. Much of it was necessary, but this stimulus continued well after the economy reopened. Add to that the reduced supply of services during the worst of the Pandemic and supply chain crunch that lingered on for a while, and you had more money chasing fewer goods and services - a recipe for high inflation.

Of course, inflation is still higher than the target 2%. But it has come down a lot from the >9% peak, which is good. The reason for it is not less greed or something, but aggressive raising of the interest rates by the fed.

Note that the Biden administration wanted to spend additional $3.5T, most of it for additional subsidies for parents and blue state rich. That additional fiscal stimulus would have pushed inflation into double digits and would have required even more aggressive action on interest rates to get inflation under control.

 

[Derec]

“Greedflation” has been around forever. Profits are a driver in capitalism. Can’t have one without the other.

You say that as if "profits" were a bad thing.

 

[Derec]

Greedflation refers to price increases not caused by increases in costs.

But this heavily charged moniker pretends that the increase in price is driven by greed, which is nonsense. Did corporate executives become more greedy all of a sudden? Where was that greed during the decades of low ~2% inflation?

It is mixing up cause and effect of course. Price is a function of supply and demand, and both of those are in turn a function of price (among other things), setting up a feedback network.
The Pandemic disrupted the supply and demand balance. Initially, it pretty much destroyed supply in in-person services. That was partially offset by remote services - food delivery instead of dining in, Zoom yoga classes instead of in-person ones, Only Fans instead of strip clubs and hookers. But nevertheless, services declined. Later, supply of goods also declined due to supply chain issues.
On the other side of the ledger, massive fiscal stimulus by the federal government made many people flush with cash. That stimulus continued long after the economy reopened. So you had more money chasing fewer goods and services. The result is inevitably higher prices. But if costs do not increase at the same rate as prices (or have longer ramp-up times) that results in more profits. Profits are, after all, the difference between the revenue and costs.

No sudden increase in greed is needed to explain higher corporate profits due to this inflation, and calling it "greedflation" is missing the fundamental cause and effect relationship.

=

 

[laughing dog]

“Greedflation” has been around forever. Profits are a driver in capitalism. Can’t have one without the other.

You say that as if "profits" were a bad thing.

No I didn't.

Greedflation refers to price increases not caused by increases in costs.

But this heavily charged moniker pretends that the increase in price is driven by greed, which is nonsense. Did corporate executives become more greedy all of a sudden? Where was that greed during the decades of low ~2% inflation?

It is mixing up cause and effect of course. Price is a function of supply and demand, and both of those are in turn a function of price (among other things), setting up a feedback network.
The Pandemic disrupted the supply and demand balance. Initially, it pretty much destroyed supply in in-person services. That was partially offset by remote services - food delivery instead of dining in, Zoom yoga classes instead of in-person ones, Only Fans instead of strip clubs and hookers. But nevertheless, services declined. Later, supply of goods also declined due to supply chain issues.
On the other side of the ledger, massive fiscal stimulus by the federal government made many people flush with cash. That stimulus continued long after the economy reopened. So you had more money chasing fewer goods and services. The result is inevitably higher prices. But if costs do not increase at the same rate as prices (or have longer ramp-up times) that results in more profits. Profits are, after all, the difference between the revenue and costs.

No sudden increase in greed is needed to explain higher corporate profits due to this inflation, and calling it "greedflation" is missing the fundamental cause and effect relationship.

That is a long-winded way of agreeing with my observation.

 

[laughing dog]

I already pointed out "greed" and "greeflation" are not synonyms and you are using them as such, so of course you haven't seen it. You can't continue to say I haven't posted it if you acknowledge I have.

. You are mistaken - I did not use “greed” and “greedflation” as synonyms” as I previously explained.

Um, yes you did. You exactly did. Admit your mistake and move on.

You are mistaken. I did in post #16. History leads me to conclude that
1) you are incapable or unwilling to grasp any nuance in reasoning, and
2) you will refuse to admit your mistake.

But, I am not a therapist and feel no need to help you through your therapeutic needs.

 

[Derec]

No I didn't.

If you say so.

That is a long-winded way of agreeing with my observation.

It's a concise way of saying that its moniker is a politically driven misnomer.
But you say we agree. Do you agree that those who blame "corporate profits" for the inflation are mixing up cause and effect? Because if you do, there may be hope for you yet.

 

[ZiprHead]

I said that more than a year ago. When I said raising interest rates on everyone wasn't the cure because it doesn't address the problem, some of the more conservative members here pooh poohed the idea. But here we are, still under the grip of inflation.

Yes, this claim has been made before, and not just by you. But if rasining interest rates is no the way to address the problem of inflation, what prescription does Dr. ZiprHead have? Maybe price controls?

How about the windfall profits tax the Republicans refused to sign onto?

The idea of blaming "greed" for inflation is reversing cause and effect. Increased corporate profits are not cause of the inflation, but a consequence of it. The Pandemic led the federal government to issue a lot of fiscal stimulus. Much of it was necessary, but this stimulus continued well after the economy reopened. Add to that the reduced supply of services during the worst of the Pandemic and supply chain crunch that lingered on for a while, and you had more money chasing fewer goods and services - a recipe for high inflation.

After so many big business types hava admitted to raising their prices and using inflation to cover it up, after huge coroporate profits, including many record breaking profits, you still believe the above crap? There are none so blind as those who will not see.