Leftist think tanks says inflation is driven by profits not wages. Duh.
None of these articles look at margins but at prices (and profits) - I wish people would understand the basics of economics.
If prices in the stuff you buy (gas) goes up, your revenue goes up, your profits go up, but your margin (depending on variable costs) might be the same (you don't change anything in running your business).
Or prices go up because you increase prices because of demand (margin increases, profits go up).
Or you increase prices because everyone increases prices (margin goes up).
There are very different models for why prices (and profits go) up.
We should talk about what happens, not "prices are going up", this is like saying "the sun goes up every morning", yes, some kind of understanding, but a very limited on why the sun "goes up" every morning.
None of these articles look at margins but at prices (and profits) - I wish people would understand the basics of economics.
If prices in the stuff you buy (gas) goes up, your revenue goes up, your profits go up, but your margin (depending on variable costs) might be the same (you don't change anything in running your business).
Or prices go up because you increase prices because of demand (margin increases, profits go up).
Or you increase prices because everyone increases prices (margin goes up).
There are very different models for why prices (and profits go) up.
We should talk about what happens, not "prices are going up", this is like saying "the sun goes up every morning", yes, some kind of understanding, but a very limited on why the sun "goes up" every morning.
I'd wish journalists would not dumb down readers.