Don’t take my word for it — they’ll tell you themselves.
Today, CEOs of big corporations are playing the tricky “Inflation Blame Game.”
By Jim Hightower | May 4, 2022
for Assorted Ideas, Large & Small
Publicly, they moan that the pandemic is slamming their poor corporations with factory shutdowns, supply chain delays, wage hikes, and other increased costs. But inside their board rooms, executives are high-fiving each other and pocketing bonuses.
What’s going on?
The trick is that these giants are in non-competitive markets operating as monopolies, so they can set prices, mug you and me, and scamper away with record profits. In 2019 for example, before the pandemic, corporate behemoths hauled in roughly a trillion dollars in profit. In 2021, during the pandemic, they grabbed more than $1.7 trillion.
This huge profit jump accounts for 60 percent of the inflation now slapping U.S. families!
Take supermarket goliath Kroger. Its CEO gloated last summer that “a little bit of inflation is always good in our business,” adding that “we’ve been very comfortable with our ability to pass on [price] increases” to consumers.
“Comfortable” indeed. Last year, Kroger used its monopoly pricing power to reap record profits. Then it spent $1.5 billion of those gains not to benefit consumers or workers, but to buy back its own stock — a scam that siphons profits to top executives and big shareholders.
Or take the fast-food purveyor McDonald’s. Executives bragged to their shareholders that despite the supply disruptions of the pandemic and higher costs for meat and labor, its top executives had used the chain’s monopoly power in 2021 to up prices, thus increasing corporate profits by a stunning 59 percent over the previous year.
And the game goes on: “We’re going to have the best growth we’ve ever had this year,” Wall Street banking titan Jamie Dimon exalted at the start of 2022.
Hocus Pocus — this is how the rich get richer and inequality “happens.”
OtherWords columnist Jim Hightower is a radio commentator, writer, and public speaker. This op-ed was distributed by OtherWords.org.
more from assorted ideas, large & small
- New York Times Wins My First Annual Dimwit Health Reporting AwardThe New York Times’ anti-alcohol article misrepresents health risks, failing to provide essential context and maintaining bias, while neglecting more pressing public health issues.
- What Shapes American Conspiracy Theories?In a recent New York Times article, the claim that television shows like the X Files created paranoid conspiracy theorists in America is challenged. David Stone argues that distrust in government stemmed from historical events, notably the 1963 assassination and subsequent cover-ups. He asserts that skepticism existed prior to such entertainment influences.
- East or West Coast: Where to Have Your Beach WeddingPlan your dream beach wedding! Discover top East and West Coast destinations, compare unique vibes, and explore expert tips to ensure the perfect day.
- 5 Tips for Driving Efficiency in Your Woodworking ShopWoodworkers must stay productive while maintaining their focus on the job. Learn five essential tips for driving efficiency in your woodworking shop.
- Tips for Preventing Accidents in Your Manufacturing PlantA proactive approach can lower the number of incidents in your manufacturing facility. Learn several tips for preventing accidents in your manufacturing plant.
Ten Years, or Another Temporary Fix?
Roosevelt Island was built through public investment, then expected to support itself through development. The ten-year lease extension gives RIOC a rare chance to replace short-term deals with a financial system designed to outlast the people approving them.
1 COMMENTS