...that Republicans & corporations don’t want you to know
HOW CAN A STATEMENT BE HALF TRUE…?
Inflation is blamed on workers, government spending, and Build Back Better agenda. The real culprit? Corporate greed.
Corporate profit margins are at their highest point in 70 years
…experts rejected the idea that corporations are the main culprit and said the spike in prices follows big federal spending, heightened demand, and supply problems, all of which accompanied the pandemic.
It’s corporations that raise prices, and thus nominally; they are the ones who cause inflation.
The question is why did their prices go up. Is it the private sector or the government?
You cannot have natural inflation unless there are shortages. Except for cars and select products, there are no shortages.
Agriculture price increases are a choice by monopolies because they have pricing power. Even the supply chain issues are corporate greed issues. The private sector chose Just-In-Time-Inventory (JITI), which means even a short supply-chain disruption can cause shortages. As well, corporate greed created chip shortages. They decided to chase cheap labor overseas. The supply-chain disruption caused by the pandemic and JITI is the failure of the private sector, not the government.
Math always offers an answer. You cannot have record profits even before the realization of inflation and then claim you had to raise prices to maintain profits. Inflation is an excuse used to transfer the wealth of the many to the few.
“Corporate profit margins are at their highest point in 70 years … they’re overcharging us for gas, medicine, and groceries, and pocketing the difference.”
The cause of rising grocery prices is more a tale of supply and demand…
Consumers in the U.S. tend to pay more for medicine than consumers in other countries. Oil companies are also making more money lately. However, economists say it’s misleading for Smith to suggest that your neighborhood grocery store or gas station is running what she described as “a racket.”
As for groceries, economists balked at the notion that local grocers are shaking down customers. WHAT PROOF DO ECONOMIST GIVE WHEN MAKING THIS STATEMENT…?
“I do not necessarily agree with the claim that the current record level of the profit margin shows that businesses are ‘overcharging us for gas, medicine, and groceries, and pocketing the difference.’”
NO DATA IS GIVEN TO SUPPORT THE VERACITY OF THIS STATEMENT.
Yardeni Research, a consulting firm offering financial analysis, in December produced a report on the profit margins of S&P 500 companies. The report shows corporate profit margins at their highest levels since at least 1994.
The statement is partially accurate but leaves out important details or takes things out of context. We rate it Half True.