* Given asset prices have seen massive inflation, with housing prices rising 20% in 2021, a significant portion of the $0.7 trillion nominal increase in corporate profits can very plausibly be attributed to devaluation of the dollar, rather than an increase in profit margins
* Looking at the change in total profits of publicly listed corporations, and assuming it reflects only a rise in profit margins, completely ignores the possibility that the share of GDP constituted by spending on goods/services provided by publicly listed corporations has risen. This is extremely plausible, even likely, given lockdowns primarily affected unlisted smaller companies, and increased the dominance of large retailers which are all publicly listed.
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[ 3.3 ms ] story [ 28.9 ms ] threadIt officially ended in May of 2021. https://www.sba.gov/funding-programs/loans/covid-19-relief-o...
* Given asset prices have seen massive inflation, with housing prices rising 20% in 2021, a significant portion of the $0.7 trillion nominal increase in corporate profits can very plausibly be attributed to devaluation of the dollar, rather than an increase in profit margins
* Looking at the change in total profits of publicly listed corporations, and assuming it reflects only a rise in profit margins, completely ignores the possibility that the share of GDP constituted by spending on goods/services provided by publicly listed corporations has risen. This is extremely plausible, even likely, given lockdowns primarily affected unlisted smaller companies, and increased the dominance of large retailers which are all publicly listed.