When the all-item of July Consumer price index (CPI) registered 5.4 percent Year after year a level of growth-inflation that basically snatches a year’s income growth for low-wage earners – it was all sure but the White House will comment if it doesn’t take action. President Joe Biden focused on rapidly raising meat prices and looking to blame someone, To say The three largest meat packers in the country to be “profitable”.
Shortly after that, the August CPI looks “OK” 5.3 percent With annual growth, the president focused on his frustration over petrol prices and once again suggested that everything was not right. Again, it was profitable Sacrificial goat: “There’s a lot of evidence that gas prices should go down – but they haven’t. We’re monitoring it closely. Maybe it should be seen inside the halls of the West Wing.”
Does it make sense to make a profit the way Biden ran and won the presidency, if not the norm, market behavior? Before petrol and meat, the criminals were private companies Federal Prison. Before that, it was Drug manufacturer Profits of epidemic victims. Are we surrounded by profit-hungry capitalists who show no mercy? Have business motivations suddenly taken a turn for the worse?
There are multiple meaningful answers to this question, but one thing is for sure: an increase in inflation means an increase in prices, and an increase in prices at the beginning of an inflationary cycle usually means an increase in profits.
When more money is printed and kept in a consumer checking account, called a stimulus or any other name, the cost increases. Vendors feel the increased pace of business, raise prices to balance their supply with growing demand, and book profits based on their historic historical operating expenses. Eventually, costs rise and bonanza ends, but initial inflation usually leads to some increased profits.
Perhaps there is some bad business behavior, but the source of the problem is inflation. And the source of inflation – you guessed it – is its tendency to finance its spending with the help of the federal government and the power of the printing press.
None other than one of the world’s most famous economists (and usually a source of inspiration for liberal politicians), John Maynard Keynes, the first Described This inflation-profit-government finger-pointing activity in his 1923 book, A tract of financial reform. Keynes was much more concerned with inflation than we are today. World War I disrupted the economy so much in England, France, and the United States (to name just three) that prices more than doubled between 1914 and 1918. The value of the Deutsche Mark has virtually disappeared with the German economy.
Keynes carefully documented the relationship I described: governments print money, raise inflation, skyrocket profits, and point fingers at world business leaders. Yes, Keynes used Biden’s favorite word, to make a profit, but he lamented how the public has lost the respect it deserves for many business leaders who work the market for all participants because of the blame.
Keynes described the besieged business leaders as “now looking the other way, suspicious and attacking themselves, falling victim to unjust and harmful laws এবং and half-guilty themselves, benefiting.”
Mainly due to inflation.
Biden And its chief economic advisers know for sure that inflation can be a cruel tax that erodes the purchasing power of weekly pay-checks just as much as high taxes. The administration’s 3.5 3.5 trillion spending package is now being used in part, arguing that some key provisions will work to reduce lost purchasing power by providing more meaningful federal support for child care, healthcare and improved public transportation.
But the administration also needs to be aware that calling for more spending to calm inflation is like putting petrol in a fire that is already burning. Music in the ears of some people who point fingers at business leaders and call them profitable, but it distracts us from the real source of the problem, and it is the money of the printing-press.