Not whether, you note, but why.
He says that inflation is all because corporations are pushing prices up and increasing their profit margins. So, let’s have a look at the actual figures.
Corporate profits are at a record – $3 trillion and change. So, Reich is right?
Clearly, that can’t actually be true, so why not?
This is nominal GDP. Before adjustments for inflation. So, we could just for inflation. Or, we could do this the other way. What percentage of GDP – nominal – is corporate profits over time?
In 2019 it was $2.4 trillion on $21.4 trillion. 11.2%
In Q2 2022 it is $3 trillion on $25.3 trillion. 11.8%.
At most, at worst, the increase in corporate profits is 0.6% of everything.
From September 2021 to September 2022, real average hourly earnings decreased 2.5 percent, seasonally adjusted.
It’s not the increase in corporate profits causing the decline in real wages, is it? Contributing to, sure, but it’s a minor influence.
See, we knew Reich was full of shit. It’s just a matter of, with each statement, working out why.