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McKinsey: Global economic profit bounces back to an all-time high (www.mckinsey.com)

submitted 1 month ago by naught101@lemmy.world to c/economics@lemmy.ml

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After years of decline, economic profits rebounded with a vengeance—driven by tech companies, performance in the energy and materials sector, and capital growth in China and North America.

To be clear, this seems like nonsense to me, in a systematic sense. Most of that profit seems to be off the back of shrinkflation, enshittification, and AI hype, all of which is rent-seeking, and none of which is based on any meaningful material increase in real underlying value..

Do these people ever think about the connection between finance and economics and real, underlying value?

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[–] TowardsTheFuture@lemmy.zip 4 points 1 month ago (1 children)

Yeah, we know, Biden wouldn’t shut up about how profit was totally good. Sure everyone was dying but fuck you; we only care about profit.

The timing also seems framed to praise Trump when it’s talking about 2020-2024z

[–] Taldan@lemmy.world 0 points 1 month ago (1 children)

Yeah, we know, Biden wouldn’t shut up about how profit was totally good

I don't recall him ever talking about EP. It's a rather niche economic metric. Are you confusing it with corporate profits, GDP, or some other more common metric?

Sure everyone was dying but fuck you; we only care about profit.

The charts show a dramatic fall in 2020, and even specifically calls out COVID as being a big factor that reduced EP

The timing also seems framed to praise Trump

EP would be a ridiculous metric to judge a president on, but if someone were to, the data would look very bad for trump. 2017-2021 had far lower EP levels compared to 2021-2025

it’s talking about 2020-2024z

The piece talks about 2005 to 2025, using 5 year averages

I'm starting to wonder if it's possible that you may not have read the article?

[–] TowardsTheFuture@lemmy.zip 1 points 1 month ago* (last edited 1 month ago)

Did you read the article? I guess I’ll explain more in depth so you don’t need to infer things.

The article is literally about profits bouncing back after the pandemic. literally saying they recovered in 2020-2024, what I was saying. Yes they compared it to data from 2005+, hence the bounce back part, instead of just saying went up from the last year. I did not think I needed to specify this because… it’s the literal title of the article?

We all knew profits were fine because Biden kept shoving how “good the economy is” down our throats when people were basically dying because they couldn’t afford shit. This was about profits being record highs and GDP being fine. Maybe not specifically about GEP, but I mean that follows from “record profits”. (After Covid and inflation, not saying from Covid itself. Many people complained about Biden’s economy because he kept praising himself for it while people couldn’t afford frozen chicken anymore. Really put a lot of voters off because it showed DNC only gives a shit about profit not people.)

And I was saying Trump is going to use this article (on how Biden’s economy bounced back) to say that Trump is doing a great job. (Where it was actively much worse in his first term and data does not include his second term.)