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This kind of inflation on most commodities and necessities hurts the middle and low-income working class the most. It's increasing the wealth disparity and further creating a monetary division between Americans.
news.yahoo.com
www.autoblog.com
-- Prices in January were up about 7.5 percent from the previous year, the biggest spike in four decades. At the same time, corporations are enjoying their highest profit margins in decades despite dealing with more expensive material goods, gnarled supply chains and a labor shortage.
Economists largely argue that inflation is too complicated of an issue to draw a simple line connecting it to corporate price gouging. But polls suggest that voters find this case compelling.
Though far from the only cause of inflation, corporate price gouging is pushing costs higher than needed based on the underlying economic conditions.
Companies are taking advantage of the fact that customers expect things to get more expensive while also pointing to a lack of real competition in some industries. Some say companies have an incentive to continue raising prices until consumers are no longer willing to pay them, and, so far, that hasn’t happened.
The Department of Justice and FBI announced earlier this month that they had opened a joint investigation into companies that may be using “supply chain disruptions as a cover for collusive schemes.” That inquiry will focus on possible coordination between companies to fix prices and divvy up markets, which are violations of antitrust law.
How much is corporate greed fueling inflation?
Some prominent Democrats have accused companies of gouging consumers to fuel sky-high profit margins, but many economists say the accusation is unfounded.
Hyundai, Genesis, Subaru warn their dealers about markups - Autoblog
Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's
www.autoblog.com
-- Prices in January were up about 7.5 percent from the previous year, the biggest spike in four decades. At the same time, corporations are enjoying their highest profit margins in decades despite dealing with more expensive material goods, gnarled supply chains and a labor shortage.
Economists largely argue that inflation is too complicated of an issue to draw a simple line connecting it to corporate price gouging. But polls suggest that voters find this case compelling.
Though far from the only cause of inflation, corporate price gouging is pushing costs higher than needed based on the underlying economic conditions.
Companies are taking advantage of the fact that customers expect things to get more expensive while also pointing to a lack of real competition in some industries. Some say companies have an incentive to continue raising prices until consumers are no longer willing to pay them, and, so far, that hasn’t happened.
The Department of Justice and FBI announced earlier this month that they had opened a joint investigation into companies that may be using “supply chain disruptions as a cover for collusive schemes.” That inquiry will focus on possible coordination between companies to fix prices and divvy up markets, which are violations of antitrust law.
