Rising corporate profits account for almost half the increase in Europe’s inflation

[SirGalahad]

It's greedy workers asking for wage rises.

Europe’s Inflation Outlook Depends on How Corporate Profits Absorb Wage Gains

Higher prices so far mostly reflect increases in profits and import costs, but labor costs are picking up

www.imf.org

Rising corporate profits account for almost half the increase in Europe’s inflation over the past two years as companies increased prices by more than spiking costs of imported energy. Now that workers are pushing for pay rises to recoup lost purchasing power, companies may have to accept a smaller profit share if inflation is to remain on track to reach the European Central Bank’s 2-percent target in 2025, as projected in our most recent World Economic Outlook.

 

[Mottie]

NEWSFLASH: Companies are only in business for money and are charging as much as they can get away with. Shock horror!

 

[Ivor Windybottom]

Yes, but competition should normally keep prices in check.

Many big companies are getting so big and dominant that many markets are becoming monopolies and cartels, while governments stand back and let it happen, while the ruling parties receive substantial donations from many of these same companies.

There's a conspiracy by the rich ruling elites to make themselves richer by making everyone else poorer.

 

[JohnD]

With the growing shortage of skilled or competent people of working age, there are persistent rumours that the balance of power will shift from business owners to workers, and wages will rise.

As Amazon knows very well, this will only happen if workers are organised, which is why they go to great lengths to avoid unionisation.

It is noteworthy that Doctors and Train Drivers have strong union membership. It is no coincidence that their pay, pensions and other benefits are greatly envied.

 

[SirGalahad]

NEWSFLASH: Companies are only in business for money and are charging as much as they can get away with. Shock horror!

Like a well trained dog, that's why you are supposed to have well functioning controls and commissions to stop concentration of market power and you have organisations like the competition commission but there powers have been weakened and neutered.

I wish I had a dog as well trained as you.

 

[SirGalahad]

With the growing shortage of skilled or competent people of working age, there are persistent rumours that the balance of power will shift from business owners to workers, and wages will rise.

As Amazon knows very well, this will only happen if workers are organised, which is why they go to great lengths to avoid unionisation.

It is noteworthy that Doctors and Train Drivers have strong union membership. It is no coincidence that their pay, pensions and other benefits are greatly envied.

Union membership has been on the decline as corporate power has increased. It should be an equitable balance but currently corporate power is the bible that all these right wingers on here genuflect to.

 

[Ivor Windybottom]

It is noteworthy that Doctors and Train Drivers have strong union membership. It is no coincidence that their pay, pensions and other benefits are greatly envied.

They're a special case. Doctors literally have everyone's lives in their hands, and they exploit this position. Also they need lots of training, so the barriers to entry for the competition are very high. Plus they are in demand globally, at the sort of salary that's worth relocating for, so can and do leave the country.

Train drivers are different, that does appear to be something of a mafia-like operation, where they extort pretty big salaries for a fairly basic job.

I wouldn't take their position as evidence that the people are rising up, or that unions are ever likely to have much power over employers of lower-skilled staff.

Most unions these days are just businesses. Their members are customers, who buy their product (membership). They pay their running costs, staff salaries, company cars etc from this revenue. I'm not sure whether they're really helping the working classes or exploiting their weakness.

 

[SirGalahad]

They're a special case. Doctors literally have everyone's lives in their hands, and they exploit this position. Also they need lots of training, so the barriers to entry for the competition are very high. Plus they are in demand globally, at the sort of salary that's worth relocating for, so can and do leave the country.

Train drivers are different, that does appear to be something of a mafia-like operation, where they extort pretty big salaries for a fairly basic job.

I wouldn't take their position as evidence that the people are rising up, or that unions are ever likely to have much power over employers of lower-skilled staff.

Most unions these days are just businesses. Their members are customers, who buy their product (membership). They pay their running costs, staff salaries, company cars etc from this revenue. I'm not sure whether they're really helping the working classes or exploiting their weakness.

What do you mean by exploit?

If I have a skill that is in demand how do I determine what I should charge or what someone is willing to pay for it?

If you mean exploit- they are being rewarded over and above what the market can bear - what evidence you have for this?

 

[Ivor Windybottom]

What do you mean by exploit?

If I have a skill that is in demand how do I determine what I should charge or what someone is willing to pay for it?

If you mean exploit- they are being rewarded over and above what the market can bear - what evidence you have for this?

I don't understand your reaction. Exploiting is just seeing a situation and using it to your advantage. Not necessarily a bad thing, just reality.

If I'm selling a car and I can see that the buyer is desperate to buy it then I'll exploit that position to get a higher price. I'll do just the same if selling my time to an employer. This is just basic fundamental market forces, how life has worked since people began bartering sheep.

 

[Mottie]

I can see that the buyer is desperate to buy it then I'll exploit that position to get a higher price.

So, like a business then.

 

[Mottie]

Like a well trained dog, that's why you are supposed to have well functioning controls and commissions to stop concentration of market power and you have organisations like the competition commission but there powers have been weakened and neutered.

I wish I had a dog as well trained as you.

If you ran a business and you could get more profit for your services just because you could, would you do that? I would - I’m not a charitable organisation and neither are they. Like I said (which you seem to take umbrage with), a business is there to make money and as much as it can. I take it you're either unemployed or work in the public/voluntary sector?

 

[SirGalahad]

If you ran a business and you could get more profit for your services just because you could, would you do that? I would - I’m not a charitable organisation and neither are they. Like I said (which you seem to take umbrage with), a business is there to make money and as much as it can. I take it you're either unemployed or work in the public/voluntary sector?

Dumb as a box of rocks - do you have seller power?

You still don't get it - decades ago we broke up organisations when they became too big as they wielded too much power and influence over pricing.

So if I ran a business- like you know something other people do not - I do run a business - you truly are such a well trained dog.

 

[Ivor Windybottom]

So, like a business then.

Yes, except that I know that there are countless others selling similar cars so if I get greedy they'll buy elsewhere instead.

This often isn't the case for big retailers, who have largely wiped out the competition in many areas.

Do you remember when Amazon was cheap? That was only a temporary state of affairs, now they've got a stranglehold they charge more, in some cases more than the typical price before they originally came along and undercut the existing competition, just for long enough to shut them down.

 

[Dork Lard]

Where's my £20ph for picking strawberries???

 

[SirGalahad]

Yes, except that I know that there are countless others selling similar cars so if I get greedy they'll buy elsewhere instead.

This often isn't the case for big retailers, who have largely wiped out the competition in many areas.

Do you remember when Amazon was cheap? That was only a temporary state of affairs, now they've got a stranglehold they charge more, in some cases more than the typical price before they originally came along and undercut the existing competition, just for long enough to shut them down.

They can abuse their market position using Predatory pricing.

You are trying to talk sense to a dumb Brexer.