Trickle-down Economics is Really Trickle-Up - 20 January 2024

Inflation has been a key concern of many in the USA for the last year, perhaps longer.  FOX News [sic], in particular, has been banging on President Biden and his "failure" to control inflation, rating it one of the key problems that Biden "must solve".  However, now a more complete truth is coming out, backed by actual data and studies rather than gaslighting (from FOX).

Much of the recent inflation is due to increased corporate profit-taking.  Yeah, I know some will be surprised at this, and even contradict it.  In their effort to stream more profits, the companies are simply hiding behind the headlines and blaming their own actions on the inflation boogey-man.  Here is the behavior laid stark -

The report, compiled by the progressive Groundwork Collaborative think tank, found corporate profits accounted for about 53% of inflation during last year’s second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report.

Note that second sentence - profits are driving almost 5x the amount of price growth that has been historic.  

As a shareholder, I am delighted, but as a consumer, hang 'em all!  And the next time you consider the "benefits" of trickle-down economics, remember this, and ask yourself if the explanations of trickle-down economics are complete or if they are masking a deeper strategy better described as trickle-up.