Have we allowed corporations to get so large that they can cause inflation?

[independentusa]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

 

[Gateman_Wen]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

We definitely have. Unregulated capitalism leads to excessive greed.

 

[Mr Person]

A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up.

Oligopoly

 

[XDU]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

The size of the business doesn't matter. It's the attitude of the shareholders. A good business understands how the accumulation of profit and consolidation of market share do not matter when they sabotage the conversion of equity into memories.

The problem with progressives is they've refused under any and all circumstances to mandate pursuit of excellence when it comes to the pursuit of happiness. The notion of progressive conservatism has died because progressives have obsessed with committing themselves to the egalitarianism of the political left...

...so in turn, shareholders have become vain and gluttonous while pursuing rudimentary memories. All they want is a somewhat basic lifestyle which becomes twisted glamour. They want to flaunt their wealth, have turned the art of celebrity into a lifestyle, and are content with decadent indulgences which make no effort whatsoever to enjoy sophisticated refinement.

It's for these motives that shareholders want to simply increase the numbers in their bank accounts. More money makes it easier to enjoy simple pleasures, to defend their simple pleasures, to prey on others who can be subdued to their basic pleasures, and to mock sophisticated happiness into becoming simple pleasures.

This twisted glamour is the real source of inflation. It isn't just about increasing prices at the expense of product quality. It's the reduction of product quality itself from not caring about the memories products are used to create.

 

[NatMorton]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

Can you cite an example of a monopoly or market collusion currently going on that would support your assertion this is actually a real thing and driving inflation?

 

[Craig234]

A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up.

Close. A monopoly is one company, but loosely used to mean a small number also; because it's the same issue, but the word for that is oligopoly. Monopoly doesn't mean total control, but excessive. It is a fundamental problem with capitalism, because monopoly is of great benefit to companies and they'd like as much as they can get of it. The only preventive normally is government, making corruption include that harm.

 

[bave]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

No. Just no.

The problem is people are looking at 2021's profits and comparing them to 2020 and screaming "look at the increase!" without considering how badly they were depressed in 2020. If you compared them to 2019 the increase is far more reasonable and similar to previous years.

When people complain about oil companies, did they care for years and years when the oil companies were losing money and going bankrupt? No. Moreover, how are the oil companies rigging anything? It is a global commodity priced on global terms with incredible transparency.

Here's the hard truth. Demand is up 14-18% for consumer discretionary purchases as supported by credit card and retail spending numbers. The supply just can't match that, which means prices go up. Any business is going to sell their product for the most they can while still selling all their product, that simple.

 

[Crovax]

So let's get this straight big companies kept inflation in line for 20 decades and then just decided to inflate them and the same time a pandemic happened

I think there might be another cause

 

[NatMorton]

So let's get this straight big companies kept inflation in line for 20 decades and then just decided to inflate them and the same time a pandemic happened

I think there might be another cause

Yes, exactly. We all understand corporations have been remarkably altruistic until just recently.

 

[ttwtt78640]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

Hmm… if a retail widget business marks up the cost of a widget by 10% then what happens when the price they must pay for widgets goes up by 25%?

Yep, their gross profit per widget sold goes up even if they sell exactly the same number of widgets and keep the same 10% (per widget) markup.

If they also sell more widgets this year than they sold last year then their (total) profits go up even more, even with the same 10% profit (per widget) margin.

You have shown no evidence of price gouging - increasing the profit margin (percentage) per widget sold.

 

[Individual]

Which corporations are we talking about?

 

[aociswundumho]

We definitely have. Unregulated capitalism leads to excessive greed.

Healthcare is one of the most regulated industries in the US, and there are thousands of stories of people being charged outrageous prices by highly regulated hospitals.

 

[independentusa]

Can you cite an example of a monopoly or market collusion currently going on that would support your assertion this is actually a real thing and driving inflation?

Actually we can look at the energy companies. When I was young there were almost thirty oil companies in this country. There was fierce competition which helped oo keep prices down and even lead to what were called price wars. That is when the competing companies tried to use lower prices to gain market share. Over the years the big fish were allowed by the government to swallow the little fish and close their refineries. Now we have just a couple of huge fish and vey few refineries. There is no real competition left in that industry and prices have gone up even though there is no shortage of fuel. Can you even find a station in your town that has a really lower or different price for fuel than any other? And every time a refinery has a problem, before they can even tell us about it, prices jump because these same companies that close all of the refineries ell us it will cause a gas shortage and thus they have to raise prices. As I said in my OP, their profits rose by over 170 billion dollars and we are the ones paying the price of lack of competition in that market caused by the size and collusion between these major corporations. .

 

[independentusa]

Healthcare is one of the most regulated industries in the US, and there are thousands of stories of people being charged outrageous prices by highly regulated hospitals.

I was in heath care for 40 years and there is no competition in health care to keep prices down, Regulation does not keep prices down, but insures that health care services meet certain standards. Jut look at the price of certain medications like insulin. Prices have risen over 1000% and the government regulations do nothing to stop it from rising even higher, ony to insure it is safe.

 

[washunut]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

I always find it interesting the number of lemmings we find on a site such as this. The above is a great example. Oil is a global market impacted by all sorts of things. Not long ago, the spot price of oil actually went negative. Now for various reasons the price has shot up. Have the biggest companies gotten bigger over this short span, no. Will the price of oil go down if tensions over Ukraine are lowered, in all likelihood yes.

Oftentimes there is a sliver of truth in the B.S. politicians throw at us. Enough for their loyalists to hand onto.

 

[rickc]

Can you cite an example of a monopoly or market collusion currently going on that would support your assertion this is actually a real thing and driving inflation?

Don't know if they colluded but they all raised their prices simultaneously. Corporate profits are setting records. Margins are doubling or tripling. Obviously someone thought the pandemic, supply chain problems and increasing labor cost would give them a good excuse. But it certainly doesn't seem those things hurt the cost of production or they have more than covered their cost.

One thing about it. If they caused it. They are going to pay for it. The FED is about to put us in recession. Just hope it is not as bad as the Bush depression.

Meat packers' profit margins jumped 300% during pandemic - White House economics team​

Jeff Bezos and the Walmart heirs have grown $116 billion richer during the pandemic—35 times the total hazard pay given to more than 2.5 million Amazon and Walmart workers.​

Fourth quarter earnings for the S&P 500 are expected to be up 22.4%, according to Refinitiv, capping off a remarkable 2021 where overall earnings will be up approximately 49%.

This is a few examples. Plenty more if you do a search

 

[RIP U.S. Democracy]

I read a OP on this board that said that 60% of the inflation is being caused by corporation raising prices to increase profits. When I look at just the energy companies and see that last year during the epidemic their profits rose by more than a170 billion dollars while gas prices have seemingly risen for no other reason, I think it might be true. A monopoly is not one company controlling competition and prices, it can be several companies doing so by working together to keep prices up. That is what seems to have happened, not only with energy companies, but with a large portion of our economy. Maybe it is time to once again have a monopoly busting government come into power and force competition in the market place to bring down both prices and inflation. Of course it will not happen as long as these large corporations can continue to buy our politico's, and they do with both parties. If we do not do something about the large corporations price gauging, we may see inflation of over 3% continue into the far future.

I think the bigger problem is that there are too many corporations that are Too Big To Fail, like the Wall Street banks that brought down the economy back in 2008.

 

[ttwtt78640]

Actually we can look at the energy companies. When I was young there were almost thirty oil companies in this country. There was fierce competition which helped oo keep prices down and even lead to what were called price wars. That is when the competing companies tried to use lower prices to gain market share. Over the years the big fish were allowed by the government to swallow the little fish and close their refineries. Now we have just a couple of huge fish and vey few refineries. There is no real competition left in that industry and prices have gone up even though there is no shortage of fuel. Can you even find a station in your town that has a really lower or different price for fuel than any other? And every time a refinery has a problem, before they can even tell us about it, prices jump because these same companies that close all of the refineries ell us it will cause a gas shortage and thus they have to raise prices. As I said in my OP, their profits rose by over 170 billion dollars and we are the ones paying the price of lack of competition in that market caused by the size and collusion between these major corporations. .

I see no recent difference in the margin between the US crude oil price (which is globally controlled) and the US pump price for gas.

Crude Oil Prices - 70 Year Historical Chart

Interactive charts of West Texas Intermediate (WTI or NYMEX) crude oil prices per barrel back to 1946. The price of oil shown is adjusted for inflation using the headline CPI and is shown by default on a logarithmic scale. The current month is updated on an hourly basis with today's latest value.

www.macrotrends.net

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

 

[aociswundumho]

I was in heath care for 40 years and there is no competition in health care to keep prices down,

Gee, why is there no competition for health care services, yet lots of competition for landscaping services?

Regulation does not keep prices down, but insures that health care services meet certain standards.

Yes, "standards" which are nothing but the personal preference of the regulator or group of regulators.

Jut look at the price of certain medications like insulin. Prices have risen over 1000% and the government regulations do nothing to stop it from rising even higher, ony to insure it is safe.

The high price of insulin is due entirely to government regulations.

Americans Cross Border Into Mexico To Buy Insulin At A Fraction Of U.S. Cost - KFF Health News

For one patient, a three-month supply of insulin is $3,700 in the U.S. versus $600 in Mexico. But is it legal?

khn.org

Why can't Americans buy insulin in Mexico and resell it in the US? Because US government regulations forbid them from doing so.

 

[Deuce]

Healthcare is one of the most regulated industries in the US, and there are thousands of stories of people being charged outrageous prices by highly regulated hospitals.

But you're well aware that our system is the most expensive on the entire planet, so what point is it you think you are making here?

 

[NatMorton]

Actually we can look at the energy companies. When I was young there were almost thirty oil companies in this country. There was fierce competition which helped oo keep prices down and even lead to what were called price wars. That is when the competing companies tried to use lower prices to gain market share. Over the years the big fish were allowed by the government to swallow the little fish and close their refineries. Now we have just a couple of huge fish and vey few refineries. There is no real competition left in that industry and prices have gone up even though there is no shortage of fuel. Can you even find a station in your town that has a really lower or different price for fuel than any other? And every time a refinery has a problem, before they can even tell us about it, prices jump because these same companies that close all of the refineries ell us it will cause a gas shortage and thus they have to raise prices. As I said in my OP, their profits rose by over 170 billion dollars and we are the ones paying the price of lack of competition in that market caused by the size and collusion between these major corporations. .

It may seem that way, but that’s not actually what the data say. The red line in this graph is the price of gasoline adjusted by inflation over the last 40+ years:



Source: here.

… it’s gone slowly, but steadily down over the years, not up.

 

[aociswundumho]

But you're well aware that our system is the most expensive on the entire planet,

And it's one of the most regulated industries in the entire country.

so what point is it you think you are making here?

The idea that government regulation protects consumers from high prices is absurd.

 

[Deuce]

And it's one of the most regulated industries in the entire country.



The idea that government regulation protects consumers from high prices is absurd.

Would you describe healthcare as less regulated in other countries? Canada, Sweden, France, Germany, Australia, etc?

 

[Razoo]

Deregulation sucks and could ruin the USA economy ultimately. It is not healthy for competition but does
honor monopolies which can eliminate the small business industry.

 

[Razoo]

Would you describe healthcare as less regulated in other countries? Canada, Sweden, France, Germany, Australia, etc?

these countries have health care for all/medicare for all essentially. aka taxpayer sponsored insurance.

In this country we have insurance which promotes bankruptcy ..............