Showing posts with label profiteering. Show all posts
Showing posts with label profiteering. Show all posts

Monday, December 11, 2023

Profiteering is indeed a big part of inflation

Actually, you'd have had to be awfully gullible to ever believe that it was all about "market forces."
A new report from progressive UK.-based think-tanks IPPR and Common Wealth says profiteering played a major role in jacking up prices far above the rise in costs, reinforcing a previous but narrower study showing such an impact. Among other things, the researchers called for a global corporation tax to curtail unrestrained profits...

Giant energy companies, mining companies, and monopolistic food companies all saw their profits leap ahead of inflation after the February 2022 Russian invasion of Ukraine. The report noted, “Because energy and food prices feed so significantly into costs across all sectors of the wider economy, this exacerbated the initial price shock—contributing to inflation peaking higher and lasting longer than had there been less market power.”

Technology companies, telecommunications, and banking also raised their profit margins with big price hikes. “Such companies have been able to protect their profit margins or even increase them, generating excess profits through a combination of high market power and global market dynamics,” the report said. - Daily Kos