Some Economists Say Companies Are Using 'Cover of Inflation' to Excessively Hike Prices

[ck4829]

By early fall, inflation had spread beyond physical goods to the service sector, which includes everything from health care and airline tickets to auto repairs and hotel rates.

And it's not just the cost of everyday life that's rising, corporate profits and CEO pay are also surging to an all time high this year.

During a recent House oversight subcommittee hearing, Rep. Katie Porter, D-Calif., pointed to data from an Economic Policy Institute report which found that more than half of the increased prices people are paying are coming from increases in corporate profits, and not from higher overhead costs associated with operation and labor.

Mike Konczal, director of Macroeconomic Analysis at the Roosevelt Institute, a progressive economic think tank, testified at the hearing that his organization conducted its own analysis of corporate balance sheets and other federal data, and concluded similar results.

https://www.nbcmiami.com/news/national-international/some-economists-say-corporate-greed-is-the-real-culprit-even-as-companies-blame-inflation-for-higher-costs/2902326/

[Historic NY]

1. Where were they all months and months ago?

[LuvLoogie]

3. This

[Ziggysmom]

2. Once they get prices up, they rarely go back down. We need MORE COMPETITION, especially

among food producers.

[Orrex]

4. Well, um, no shit.

[Ferrets are Cool]

5. Duh. And water is wet.

Maybe I am a economist and just don't know it.

[SalamanderSleeps]

6. These companies have been hiding in the election season as well.

"Talk shit about Kroger kiss your campaign contributions goodbye. We'll donate to your competitor."

As Mitt Romney said, "Corporations are people, my friend."


Thank the Roberts court for Citizens United.

And it's only gotten more rotten.

Now we have Six pretty little maids all in a row.


The Supreme Court is open for business!

[berniesandersmittens]

7. And all of DU says No Shit. nt

[Judi Lynn]

8. Once they believe they've tested their luck as far as is safe for them,

they will move quickly to start making all their products smaller, with cheaper materials, while keeping the price at their all-time high.

[cyclonefence]

9. NEWSFLASH!!!11!!!

(If god help us, anybody here needs one of these)

[Luciferous]

10. I'm shocked 🙄

[allegorical oracle]

11. It's more than just price hikes -- it's "shrinkflation," too. Every container of coffee and yogurt

I've bought lately has been an inch or two below the top level. Bought a small packet of six bouillon cubes last week, opened it and found only five inside. It's rife across most everything in the grocery stores.

[llmart]

12. File this under...

"No shit, Sherlock".

Such brilliant economists. They could have just asked me and I would have told them this was going to happen even back when the pandemic was shutting everything down.

[ProfessorGAC]

13. Name The Big Corporations

THe article mentions a few small fish. They don’t have enough economic influence to exacerbate the problem.
If they have the data to support this (and they seem to) then release the names of the gougers.
Let the public know who’s responsible.
Right now, the big companies have a built-in “not my fault” line. If they name names, they canb’t hide behind “it’s a global thing”.

[ck4829]

14. It's really quite sad the media's not taking price gougers to task even more

Nobody there can seem to connect the dots.

Between "inflation" and this...

BP (BP.L) more than doubled its third-quarter profit from a year earlier to $8.15 billion and expanded its share buybacks by $2.5 billion, joining rivals in reporting bumper profits that have sparked renewed calls for energy companies to pay more taxes.

London-based BP joins rivals including Shell (SHEL.L), Exxon Mobil and TotalEnergies (TTEF.PA) which also reported bumper profits last week that also saw the sector pay out a record $29 billion to shareholders.

U.S. President Joe Biden on Monday called on major oil companies who are bringing in big profits to stop "war profiteering", threatening to hit them with higher taxes if they don't increase production...

Read more: https://www.reuters.com/business/energy/bp-smashes-forecasts-with-82-billion-profit-2022-11-01/

https://democraticunderground.com/10142988734

LONDON -- Shell’s earnings more than doubled in the third quarter, fueling the debate over taxes on energy producers’ windfall profits as they have benefited from high oil and natural gas prices following Russia’s invasion of Ukraine.

Adjusted earnings, which exclude one-time items and fluctuations in the value of inventories, jumped to $9.45 billion from $4.13 billion in the same period last year, Shell said Thursday. The London-based energy giant also announced a $4 billion share buyback and plans to increase its fourth-quarter dividend by 15%.

“We are delivering robust results at a time of ongoing volatility in global energy market,” Chief Executive Ben van Beurden said in a statement. “At the same time we are working closely with governments and customers to address their short and long-term energy needs.”

https://democraticunderground.com/10142986412

[aquaman]

15. Amazing article.....

I truly would have never guessed this. Thanks so much NBC for enlightening me....

[leftyladyfrommo]

16. Some? I thnk they all are and have been. nt

[JCMach1]

17. Some have jumped the shark and it will affect their bottom line