You can have inflation and lower profits, no issue there. The unit of account shifting in value has some, but ultimately little, impact on how much of the value-add companies keep for themselves, or how much their business expands or contracts. The same percentage of a less valuable unit of account is a larger number, but still the same percentage.
People like when if their rent is suddenly a lower percentage of their wages, they don’t really care about the absolute numbers.
You can have inflation and lower profits, no issue there. The unit of account shifting in value has some, but ultimately little, impact on how much of the value-add companies keep for themselves, or how much their business expands or contracts. The same percentage of a less valuable unit of account is a larger number, but still the same percentage.
People like when if their rent is suddenly a lower percentage of their wages, they don’t really care about the absolute numbers.