Some pundits argue that America’s current inflation is brought on by company worth gouging. I discover that declare to be moderately implausible. Why would companies instantly select to have interaction in worth gouging in 2022? Why not 2017? Or 2012? So I made a decision to examine the nationwide earnings accounts. Listed here are the share modifications from the 4th quarter of 2021 to the 4th quarter of 2022 (all nominal variables):
Nationwide earnings: +6.8%
Labor compensation: +7.1%
Capital (and proprietor) earnings: +0.9%
Company earnings: + 1.2%
What am I lacking? Why would this information lead folks to imagine that revenue margins are the foremost issue driving inflation?
