Profit margins for US companies have reached levels not seen since World War II.
There is a strong correlation between the increasing share of corporate profits in gross domestic product and sharp price increases in the US after the Covid pandemic. A paper published by the University of Massachusetts.
After making extraordinary profits due to fluctuating commodity prices and supply bottlenecks, major companies are excited to raise prices further to increase profit margins.
They found that the models used to explain the inflation of the 1970s—such as increased aggregate demand, money supply expansion, or rising wage costs that fueled the spiral—had little evidence to apply to this recent increase. They say the Covid-19 price hike is mainly seller inflation. Where cost increases are being experienced by all their competitors, companies feel safe to pass them on in the expectation of a “tacit understanding” that rivals will do the same.
Federica Coco and Keith Frey
Our other charts of the week. . .
The introduction of telecommuting as a result of the pandemic has helped raise the birth rate, especially among wealthier and more educated women.
“While the long-term decline in fertility rates across the developed world makes it difficult to be overall optimistic about the future trajectory of births, the rise of telecommuting is one factor that seems likely to help push it in the other direction. Some subgroups of the population,” said the authors of was Analysis by the Economic Innovation GroupA US-based think-tank.
A rising birth rate will provide an important boost to economic growth, and balance demographic changes such as an aging population.
The study also found that single remote workers were significantly more likely than those who did not work remotely to plan to get married in the next year. This is likely because remote workers have higher migration rates than other workers, meaning that those interested in marriage will be able to relocate closer to a potential partner.
Britain’s approval rating for EU leadership, up from 2013, exceeded 50 percent in 2022 for the first time since the survey began. At 51 percent, this is higher than the 46 percent who approve of the UK leadership.
The last time a majority of Britons approved of the country’s leadership was in 2006, when Tony Blair was prime minister.
Most Britons support strikes by nurses and ambulance workers. The stock has gained 3 percent since January, according to polling firm Ipsos.
Teachers and railway workers have been the next most widely supported in sympathy since January, while support for strikes has declined in other sectors, including border and passport control staff, civil servants, university staff and driving examiners.
Talks between ministers and health unions on Thursday resulted in a promising pay offer. Significantly improved conditions for nurses, ambulance staff and other NHS workers in England have raised hopes that other disputes could soon be resolved.
The RMT has agreed to poll members on Network Rail’s revised offer and teaching unions opened talks on pay, conditions and workload on Friday.
The European energy crisis hasn’t left consumers with big cars.
In January, total sport utility vehicle sales rose 14 percent year-on-year to 464,000 units – a record 51 percent share of new car registrations in the EU, according to market researcher Jato Dynamics.
While petrol guzzling and diesel models remain the most popular choices, with new SUVs accounting for nearly three-quarters of sales, figures show plug-in hybrids and pure electric versions of the “Chelsea Tractor” are on the rise.
The SUV remains very popular despite the launch of a greener electric model. Plug-in hybrid SUVs, which offer a compromise between more polluting internal combustion engines and more expensive pure electric vehicles, have experienced particularly high interest.
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