After Amazon workers' union victory the Fed must stop tipping the scales for bosses Robert Reich

[Uncle Joe]

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Pause here to consider this: the commerce department reported on Wednesday that corporate profits are at a 70-year high. You read that right. Not since 1952 have corporations done as well as they are now doing.

Amazon’s profits are in the stratosphere, but it’s not just Amazon. Across the board, American corporations are flush with cash.

Although they are paying higher costs (including higher wages), they’ve still managed to increase their profits. How? They have enough pricing power to pass on those higher costs to consumers, and even add some more for themselves.

When American corporations are overflowing with money like this, why would wage gains heat up price increases, as the Times reports? In a healthy economy, corporations would not be passing on higher costs – including higher wages – to their consumers. They’d be paying the higher wages out of their profits.

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https://www.theguardian.com/commentisfree/2022/apr/03/amazon-workers-union-victory-federal-reserve-corporate-profits