A significant part of it is that for a couple decades our economy was based on bullshit. Instead of companies being profitable, especially in tech, their primary goal was to attract venture capital. There was a lot of money floating around with not many easy options to make it grow. Investors were willing to take big risks for the possibility of big future returns. Executives ywe’re happy to spend as much as they could and hire as much as they could because the more they spent the higher the company’s valuation would be, regardless of current profit.

With the interest rates rising, money is abandoning riskier investments. All these places that had tons of cash flowing in because they might be the next big thing are suddenly trying to be profitable now.

This is compounded by companies wanting constant growth, and flat out refusing to take any of the hit. Investors want companies to show profit now, and goddamn if they’re not going to deliver. (Even if it does cost future revenue and stability.) So instead they’re trying to push the entire burden onto consumers and are just testing how much they will tolerate.

Are you still buying coke and Pepsi products? Because their prices have doubled in five years. For a lot of cheap things, especially food, demand is fairly inelastic. People gotta eat, and they’re not looking to change any habits based on prices.

I, for one have cut way back on coke/Pepsi products. It’s not because I can’t afford $13/case, because I can. I can afford $20/case without really noticing. I refuse, mostly out of spite. (Unless there’s a good sale.) Those companies don’t need to improve their 2019 profit margin of 20% (it’s now 23%). First, that profit margin excludes the ridiculous salaries of execs. Second, 20% of $13 is already a bigger number than 20% of $6 was. They don’t need to both increase their profit percentage WHILE increasing their prices. They’re double dipping. And they’re passing none of that windfall to consumers or the government or to their employees.