"Corporate America is facing its sharpest drop in profits since the early stages of the coronavirus pandemic". Just when inflation records a sharp decline. Perhaps these two things are related, nah?

https://www.ft.com/content/a7dbefd3-7621-4cb0-98b1-efb74a51cf72

#inflation #sellersinflation #profits #sp500

"We should recognize the recourse to higher interest rates for what it is: a strategy to dump the costs of inflation on to labor (by suppressing wages), on to social programs (through austerity), and on to future generations (by discouraging investment)."

Some real good Isabella Weber on the effectiveness of rate hikes on fighting profit-driven inflation: https://www.project-syndicate.org/commentary/sellers-inflation-diagnosis-accepted-but-old-interest-rate-policies-remain-by-isabella-m-weber-2023-07

#inflation #sellersinflation #greedflation

(Why don't customers switch to Coke? It turns out that duopolies like Pepsi-Coke are able to tacitly collude on pricing, and Coke is *also* raking in massive profits.)

#UMassAmherst economists Isabella Weber and Evan Wasner call this #SellersInflation, documenting how "overlapping emergencies" allow companies to raise prices far in excess of their cost increases, and then keep them high even when the emergencies end:

https://scholarworks.umass.edu/econ_workingpaper/343/

20/