Quote (MildSambal @ Aug 19 2024 03:59pm)
That's a lot of jargon and mental gymnastics
Yes, inflation affects everyone, but in a market economy if a company's costs of inputs go up, shouldn't their profits take a hit? We're not seeing that. We're seeing all the damage go to the consumer's wallet and these companies experiencing INCREDIBLE profits in a highly volatile economy
It doesn't add up
The same thing is happening in the housing rental market
No because they pass on the costs. The farmer who has to pay more for fertilizer and labor passes them on, the transportation companies that sees higher labor and fuel costs pass them on, so does the Tyson who packages these things, so does the grocery store and pretty much the whole value chain does. But the initial causal factor of why energy, labor, other input costs go up are largely due to government actions (shutting down the economy has consequences, printing trillions has consequences).
It adds up, you can simply type in the ticker of these food companies and you'll see their margins are basically in line with what they were 10 years ago, which tells you they aren't more profitable or expanded their profit margins but passing on the costs.