Probably because profit margins are expected to go back down naturally. Profit was low during covid for obvious reasons. It would’ve been expected to be high during the recovery. It would be quite weird if margins remained really high for seemingly no reason, suggests that theres some fundamental issue with the economy that wasn’t there pre-covid.

Unlike profit, there’s a pretty well known mechanism that explains why high wage increases beget more high wage increases along with the high prices that brings along. People get really up in arms over the fed going after wages, but if you know the model you understand that its purely because it causes the economy to be stuck at high prices. There’s no point in having high increase in wages if inflation is even higher.