Monday, August 07, 2006

An Economic Puzzle


This is very strange, and I admit to probably requiring the correction and/or comment of a real "Expert Economist" (or some MBA whizz-kid) to sort it out, as I am sure I am not smart enough to figure it out.

Profit equals Price minus Cost, if I recall my one and only foray into the 'dismal science' a'right.

Why is it that when PROFITS rise, it is not considered 'inflationary' ???

Only when COSTS rise--and usually only when they rise on account of increased costs for labor--does it register on the National Official Federal Inflation-ometer...

Very strange, that...Very strange, indeed...

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