https://www.theguardian.com/business/2022/dec/18/layoffs-us-companies-workers-holidays-christmas “…corporations have announced mass layoffs right before the holidays, claiming economic downturns have driven the cuts, even as they record profits and the economy showing no signs of a downturn. Yet, the Federal Reserve’s interest rate hikes have driven concerns that a downturn could happen soon.
I believe that the Federal Reserve will not be able to stem rising prices given the tools that they have. This is because record profits seem to me to be an indication that expense is not driving costs, but rather, greed is the major driver for the current upturn in prices.
After all, employees are an expense and profit means that revenue is exceeding expenses. Therefore, if revenue is rising, then it isn't expenses (labor) which is driving the increase in prices (revenue). Seems pretty simple to me.
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