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by ROTMetro 1030 days ago
Why are product companies going on earnings calls and saying that inflation is coming from their raising their profits if it results from deficit spending?

https://www.theguardian.com/business/2022/apr/27/inflation-c...

1 comments

When a lot of money without collateral is printed, it dilutes the value of the money already in circulation. That dilution of value is called "inflation".

I've heard endless other "explanations" for inflation. None of them make any sense, and don't fit the facts.

You being unable to understand something in a certain way that others do does not make that thing into what you can understand.

Edit: I am being rate limited, so here is my response to the reply below:

Think of it this way: economies are not simplistic analogies to villagers being given free money.

Our incomes have grown a lot over the past century yet things get cheaper. It is never a simple equation. If it were that easy that a bit of deductive reasoning could explain it then it would be pretty obvious, but the fact that we are arguing about it at all means that it isn't, and thinking that it is, because you cannot grasp the complexity, is not going help anything. If the utmost minds in the field are saying that it is really complicated and that they don't even know exactly how it works, then why do you think you have it figured out?

Think of it this way. Suppose your villagers have $10,000 and their own economy. Now give them another $10,000.

Prices will double.

But so will their incomes, right?