Half of recent US inflation due to high corporate profits, report finds

"A new report claims “resounding evidence” shows that high corporate profits are a main driver of ongoing inflation, and companies continue to keep prices high even as their inflationary costs drop.

The report, compiled by the progressive Groundwork Collaborative thinktank, found corporate profits accounted for about 53% of inflation during last year’s second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report."

https://www.theguardian.com/business/2024/jan/19/us-inflation-caused-by-corporate-profits

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trollslayer · 46-50, M

Since I was a kid I was fed the idea that government spending caused inflation - "printing more money." (Can you guess what decade I grew up in?). As I have gotten older, I have started to realize that is not really the root cause of inflation - especially in today's global corporate economy. When you have easy access to credit and few penalties for those who abuse that credit, the whole notion of "supply/demand" controlling prices breaks down.

The root cause of inflation is human greed. Seems like most people want to maximize the amount they have by whatever means so long as they stay out of jail.

JonLosAngeles66 · M

@trollslayer it seems to be getting more and more obvious.

badminton · 61-69, MVIP

@trollslayer I agree. Inflation is just price gouging by corporations.