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Writer's pictureInformed Life

Stop blaming corporate greed. The government always blames corporations for their own mistakes.

Corporate greed talking points are ignorant and take away from those that truly deserve the blame for our inflated currency. Today, just like they did in 2008, the government has created an economic disaster through bad policy and fraud, and is now pointing the finger at anyone but themselves.

 

Consider corporation A, who sells a product for $2 that costs $1 to produce. Their profit is $1 with a margin of 100%.

 

After significant inflation due to government policies, corporation A now sells a product for $3.50 that costs $2 to produce. Their profit is $1.50 with a margin of 75%.

 

Record profits, right? Corporate greed, right?


Not exactly.

 

The nominal profit is higher, but the real profit is being pressured due to decreased margins. They also have to risk more capital for less profit.

 

Compound this with increased cost of capital through increasing interest rates and softening demand, and you will quickly see why corporations are also feeling the painful effects of government policy.

 


So just remember when you hear slogans about corporate greed, it was a propagandistic message created by politicians that the NPCs are repeating with zero understanding of basic economics.


I am not a shill for corporations. The only reason corporations have any power over consumers is largely due to government supported monopolies, so once again we know who to truly blame.

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