Profit not inflation

[progressive hunter]

one benefit of making profit illegal is that there will be less taxs for the government to waste,,

 

[pknopp]

It's the only driver. up until the creation of the Federal Reserve we had no inflation. Since the creation of the Federal Reserve, with the authority to create fiat money, the dollar has depreciated by 96%.

The cause of inflation is obvious.

One does not have to raise prices.

 

[bripat9643]

One does not have to raise prices.

By "one" I assume you mean businesses. Yes, when there is more money in circulation, businesses do have to raise prices. They have to pay more for labor, more for supplies, etc., etc..

 

[Staidhup]

not sure if you know this but a company needs to have profits to maintain the business and pay their employees,,

But they were taught in school that making a profit was evil.

 

[pknopp]

By "one" I assume you mean businesses. Yes, when there is more money in circulation, businesses do have to raise prices. They have to pay more for labor, more for supplies, etc., etc..

You only have to pay more for supplies if your suppliers raise prices.

 

[colfax_m]

Yes, that's the only way. Only commies and dumbasses deny it.

No, it's not.

You're a dumb ass.

 

[colfax_m]

But they were taught in school that making a profit was evil.

Well, those profits are coming out of your pocket. Don't forget.

 

[bripat9643]

You only have to pay more for supplies if your suppliers raise prices.

No duh?

 

[bripat9643]

No, it's not.

You're a dumb ass.

Yes it is, dumbass.

 

[bripat9643]

Well, those profits are coming out of your pocket. Don't forget.

Is this where you start your "profits are EVILLLLLLLL!" spiel?

 

[Winston]

Anyone who believes that profits cause inflation is an ignorant communist.

Government cause inflation by creating money. That's the only way to create inflation.

Inflation is defined as too many dollars chasing too few goods. It can be caused by either the supply side or the demand side of the equation. Yes, the government can "print" money and that can cause inflation. But Quantitative Easing is being pulled back to the tune of 15 billion dollars a month and that number will probably go up after the December Fed meeting. Hard to make the argument that the Fed is printing money and causing inflation under those circumstances.

The problem is on the demand side and is compounded by supply chain issues. Demand for all types of goods have increased significantly, and supplying those goods has become problematic, hence price is used to control demand. And profits can most certainly cause inflation, in fact, the OP addressed that issue quite well. As profits increase in the face of a tight labor market wages will increase. That will put more dollars into the economy and without equal gains in productivity, it will not increase the supply of goods. More dollars chasing the same amount of goods is the definition of inflation.

 

[colfax_m]

Is this where you start your "profits are EVILLLLLLLL!" spiel?

I haven't said anything about evil.

I'm just pointing out that those profits come out of your pocket, and that's during a time when y'all are complaining that the prices of things is too high. That price is going somewhere.

 

[bendog]

not sure if you know this but a company needs to have profits to maintain the business and pay their employees,,

You lie about what the OP posited. A company has to have profits before employees get raises. The OP did not argue against profits, Quite the opposite. Lower rates help biz earn profits.

 

[bripat9643]

Inflation is defined as too many dollars chasing too few goods. It can be caused by either the supply side or the demand side of the equation. Yes, the government can "print" money and that can cause inflation. But Quantitative Easing is being pulled back to the tune of 15 billion dollars a month and that number will probably go up after the December Fed meeting. Hard to make the argument that the Fed is printing money and causing inflation under those circumstances.

The problem is on the demand side and is compounded by supply chain issues. Demand for all types of goods have increased significantly, and supplying those goods has become problematic, hence price is used to control demand. And profits can most certainly cause inflation, in fact, the OP addressed that issue quite well. As profits increase in the face of a tight labor market wages will increase. That will put more dollars into the economy and without equal gains in productivity, it will not increase the supply of goods. More dollars chasing the same amount of goods is the definition of inflation.

If the government borrows $4 trillion and then pays it to businesses, it has created $4 trillion.

 

[bripat9643]

I haven't said anything about evil.

I'm just pointing out that those profits come out of your pocket, and that's during a time when y'all are complaining that the prices of things is too high. That price is going somewhere.

How is that relevant to what causes inflation?

You're just trying to make businesses into the bad guy rather than the government.

 

[g5000]

Government cause inflation by creating money. That's the only way to create inflation.

Inflation depends on the velocity of money. That's why there was no inflation in the years following the 2008 crash even though the Fed pumped trillions and trillion of dollars into the economy.

No one was spending. The velocity of money was extremely slow. All that money being printed was virtually being buried in the back yard.

Now spending is going way up. The money has been dug up and is being spent. The velocity of money is increasing and that is why we now have inflation.

 

[Staidhup]

The price of everything is directly related to supply and demand. What’s so hard about understanding that basic fact? Inflation on the other hand is the result of government spending and monetary policy.

 

[g5000]

Here you can see the velocity of money plunged after the 2008 crash. Thus, no inflation despite the Fed printing trillions;

 

[Harpy Eagle]

Because profits don't create new money, dumbass.

Inflation is the progressive increase in prices of goods and services in an economy. If companies are increasing prices to increase profit, then inflation is occurring.

 

[bripat9643]

Inflation depends on the velocity of money. That's why there was no inflation in the years following the 2008 crash even though the Fed pumped trillions and trillion of dollars into the economy.

No one was spending. The velocity of money was extremely slow. All that money being printed was virtually being buried in the back yard.

Now spending is going way up. The money has been dug up and is being spent. The velocity of money is increasing and that is why we now have inflation.

In short, it's because the government is printing money.

End of story.