Europe's largest economy has flatlined recently, showing no signs of recovery from a winter recession. The International Monetary Fund has predicted Germany will be the only major advanced economy to shrink in 2023.
People are already paying for these costs increase, so the companies will pocket the tax cut and tout their record profits.
As we’ve seen after the pandemic when the inflation was soaring, companies rose their prices to keep their margin as they were instead of taking a hit on their profit.
Under the current state of capitalism, if a company isn’t making the maximum profit, that company is failing.
If the company could make up for the change in price with an increase in volume they could drop the price. If a competitor drops the price they will likely drop the price at least in theory.
People are already paying for these costs increase, so the companies will pocket the tax cut and tout their record profits.
As we’ve seen after the pandemic when the inflation was soaring, companies rose their prices to keep their margin as they were instead of taking a hit on their profit.
Under the current state of capitalism, if a company isn’t making the maximum profit, that company is failing.
If the company could make up for the change in price with an increase in volume they could drop the price. If a competitor drops the price they will likely drop the price at least in theory.