Doug Henwood wrote:
That aside, inflation isn't necessarily good for profits. Capital was deeply sad during the 1970s; profitability sucked. If oil prices stay high enough long enough we could have a recession, which would not be good for profits.
****** i think it depends on the source of inflation. though most folks point to the '73 oil "crisis" much of the negative impact on corporate profits could be the result of union/wage concessions to a great extent. the 70s were pretty much the last period of strong working class gains in this regard. much of the rise in oil prices could be viewed as a capitalist tool in the direct assault on those working class gains - as they are once again today in the airlines sector for example. i'm thinking now of much of the work by the midnight notes collective (especially the research by george caffentzis(sp?)) as a good source for such analysis.
michael catolico