Rex Nutting: Inflation hasn’t been bad for everyone — companies are producing outsized profits

by | Aug 25, 2022 | Stock Market

The highest inflation rates in four decades are squeezing the people, but corporations are doing quite well. While wages and other forms of personal incomes continue to fall behind inflation, corporate profits having been soaring, the government’s Bureau of Economic Analysis reported Thursday. More on the GDP report: GDP shrank at 0.6% annual pace in second quarter, but it wasn’t all bad news

After-tax corporate profits rose at a 41% annual rate after inflation in the second quarter of the year and have risen at a 17% annual pace since the pandemic recession ended two years ago. Meanwhile, the inflation-adjusted purchasing power of individuals’ after-tax income has fallen for five quarters in a row.

“ These facts blow a very large hole in …

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