Corporate profits were biggest driver of inflation in Europe, IMF admits
Corporate profits were biggest driver of inflation in Europe, IMF admits
Rising corporate profits have caused 45% of inflation in Europe, compared to 40% for rising import prices and just 15% for workers' wages, according to research by IMF economists.
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overpricing goods reduces people's purchasing power, which could imply two things: either people dont work that much (which is not), or just the currency is just losing its value, which is the latter in this case. idk, such basic 101 economics shouldnt be strange to a regulatory and monetary entity such as the European Central Bank. and yet they let it happen, and then the IMF come and do the pikatchu face for them. sure corporations left uncheck would ruin entire economies, the same as bankers etc and they get bailed all the time, icing on the cake. china is quite the opposite in this regard.
The whole thing is pretty funny given that IMF has been the eternal champion of neoliberalism, and all of a sudden they come out and go woah woah corporate profits are actually a problem. You know shit got out of hand when...
corporate profit need to be partially stripped back from its heads and investors, and be redistributed among common workers instead, while also watching over good pricing, and also stop bailing out banks and corporations especially the ones that are full of shit. china wouldnt think twice of letting an entity go bankrupt when it got dirt on it.
It all starts to make sense when you realize the job of Fed, IMF, and all central banks is to maintain a high rate of asset inflation while keeping wages down. Presumably you would like to think these bankers have some idea of what they are doing to achieve this. Media plays the dumb face to keep the facade up. I refuse to believe these people are completely ignorant of actual economic principles.
They are ignorant of what they are paid to be ignorant of