While businesses are already enjoying the benefits of lower taxes and regulatory relief from the Trump administration, they have yet another reason to celebrate, according to Bloomberg.
By pouring hundreds of billions of dollars of tax cuts and extra government spending into an already stretched economy, Trump is fostering an environment where firms such as conglomerate 3M Co. can raise prices because demand for their products is strong.
That’s a turn-around from the past decade, when executives often bemoaned their inability to lift prices because of their fear of sacrificing sales. The shift will help them pad profits that are already surging thanks to lower taxes. –Bloomberg
“The power is with the seller,” said IHS Markit chief business economist, Chris Williamson.
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