House oversight committee gets to root of inflation... corporate greed.

There has yet to be developed a better alternative model. Having government bureaucrats setting prices has been shown to be a disaster numerous times.

Obviously, there needs to be regulations and checks and balances to offset purely monetary motivations. But bottom line people invest in companies for the wealth effect. To expect otherwise is extremely naive.

 

strange perception IMO. I don't think we disagreed on this thread....miscommunicated, for sure.

 

Well I think you were minimizing relationship between costs and prices, at least at first. But now we've got it all straightened out so everything is good.

 

Disappointing that an economist of note such a Robert Reich fails to acknowledge supply and demand price setting.

At least some of that extra profit has to do with high oil and natural gas prices, which are set globally. When the prices of oil goes up oil company profit goes up. It isn’t greed it is supply and demand.

 

price is set by supply and demand, not directly by cost. Cost affects supply, so there is an indirect relationship.

 

It's not an indirect relationship. If the cost of producing something doubles do prices go up?

 

That would be a supply curve shift.

This is really a chicken and egg argument.

 

To be clear, the supply curve IS a cost curve. So, in that respect, supply is directly related to cost. But you certainly can have supply go up & prices go up, you can have supply go up & prices go down, hence you can have costs go up & prices go up or down, but that would require changes in demand of course.

 

Yes, caused production costs doubling.

 

If demand is perfectly elastic, supply (cost) has NO impact on price. The elasticities of both S & D, are crucial in the relationship between price & cost.

 

Really sad to see someone of his reputation resorting to deception and lies.

 

Greed on top of high prices due to global supply and demand.

 

I think we should drop corp tax rates to 0% for a least a year to reward firms for their past altruistic pricing.

 

Corporate greed in not the root of inflation. Stupid energy policy is the root of inflation. These policy makers in Washington that have failed believe they can convince the American public it's not on them is insincere and dishonest. Who turned in that 11 page report... a 7th grader.

The Big Guy said it best yesterday. "No more drilling. There is no more drilling. I haven't formed any new drilling."

Biden 'Climate Czar' John Kerry : “We have to be phasing out coal plants five times faster."

The truth is when you cap oil production and prices go up due to demand guess what, profits rise too. Record oil prices record profits . Even if the oil companies reduced margins by 5% they still would have record profits due to high oil prices.

If you want to fix inflation, vote Red.

 

BS. Trump put tariffs on China, decreased legal immigration, engaged in protectionism & passed huge stimulus acts. ALL OF THOSE ARE INFLATIONARY. Boosting gov spending didn't help. Hell, tax cuts are inflationary.

 

This whole greed narrative is one of the more childish arguments the democrats have trotted out lately. Once again they shoot themselves in the foot with their dumb messaging.

 

Cap oil production? Lol, this is a joke, right?

As of August (last date we have data) we were producing more oil than any time since March 2020 when Trump was in office. Further, in only 11 months in our entire nation’s history have we produced more oil in a month than August. If you actually look at data on this topic then you’ll see we’ve been steadily increasing oil production since May of 2020 spanning both administrations. There is no oil cap. Companies are reticent to invest billions in CapEx when doing so will reduce their margins.

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

 

Who capped oil production? OPEC? Certainly not the Biden admin.

As for oil companies reducing their margins by 5% and still having record profits, you're making a good argument for corporate greed being one of the causes of inflation.