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Sep 26 - Corporate greed, not wages, is behind inflation. It’s time for price controls



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 2 months ago '17        #1
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Naga Sadow  topics gone triple plat - Number 1 spot x23
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Sep 26 - Corporate greed, not wages, is behind inflation. It’s time for price controls
 

 
Corporations are using rising costs as an excuse to increase their prices even higher, resulting in record profits. We need limited price controls to break this cycle

On Wednesday, policymakers at the Federal Reserve – America’s central bank – continued their battle against inflation with a third straight supersize interest-rate increase. And they warned that they’re not done. They’ll continue to raise borrowing costs until inflation is tamed.

They a*sume that the underlying economic problem is a tight labor market, causing wages to rise – and prices to rise in response. And they believe interest rate increases are necessary to slow this wage-price inflation.

This is dead wrong.

Wage increases have not even kept up with inflation. Most workers’ paychecks are shrinking in terms of real purchasing power. Rather than causing inflation, wages are actually reducing inflationary pressures.

The underlying economic problem is profit-price inflation. It’s caused by corporations raising their prices above their increasing costs.

Corporations are using those increasing costs – of materials, components and labor – as excuses to increase their prices even higher, resulting in bigger profits. This is why corporate profits are close to levels not seen in over half a century.

Corporations have the power to raise prices without losing customers because they face so little competition. Since the 1980s, two-thirds of all American industries have become more concentrated.

Why are grocery prices through the roof? Because just four companies control 85% of meat and poultry processing. Just one corporation sets the price for most of the nation’s seed corn. And two giant firms dominate consumer staples.

All are raising prices and increasing profits because they can.

Big pharma, comprising five giants, is causing drug prices to soar.

The airline industry has gone from 12 carriers in 1980 to just four today, all rapidly raising ticket prices.

Wall Street has consolidated into five giant banks, raking in record profits on the spreads between the interest they pay on deposits and what they charge on loans.

Broadband is dominated by three giant cable companies, all raising their prices.

Automobile dealers are enjoying record profits as they raise the retail prices of automobiles.

Gas prices have started to drop but big oil still has the power to raise prices at the pump far higher than the costs of crude.

And so on.

This is why Congress and the administration need to take direct action against profit-price inflation, rather than rely solely on the Fed to raise interest rates and put the burden of f*ghting inflation on average working people who are not responsible for it.

Bold antitrust enforcement is essential. Even the credible threat of antitrust enforcement can deter corporations from raising prices higher than their costs.

A windfall profits tax could also be helpful. This would be a temporary tax on price increases exceeding the producer price index’s costs of producing consumer goods.

Price controls should be a backstop. The current inflation, emerging from the pandemic, is analogous to the inflation after the second world war when economists advocated temporary price controls to buy time to overcome supply bottlenecks and prevent corporate profiteering.

Limited price controls should be considered now, for the same reasons.

The inflation we are now experiencing is not due to wage gains from excessive worker power. It is due to profit gains from excessive corporate power.

It’s profits, not wages, that need to be controlled.

visit this link https://www.theguardian.c .. s-robert-reich

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 2 months ago '07        #2
pete jr 
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Price controls is the worst thing that could possibly happen. You don’t want to live in Russia or Cuba. People leave aces with large governments because this country gives you an opportunity to build a business and become wealthy. Price controls doesn’t move anyone up in class. I think keeps everyone at the same status
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 2 months ago '18        #3
DUCEDUCE  topics gone triple plat - Number 1 spot x2
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Consumers need to stop just spending like it dont matter. That is how prices will go down.
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Top 10 most propped recently  2 months ago '04        #4
ItAlY2BkLyN 
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The entire reason we're in this mess is because they FED was printing money uncontrollably. They pumped in so much money to the economy for so long with no real checks or balances.




Now they're trying to claim pandemic, supply chain, inflation, rescission, etc. for every reason except that they were reckless. Because then they'd have to answer for that and be put under further regulations. And they don't want that.


Last edited by ItAlY2BkLyN; 09-26-2022 at 06:38 PM..
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Top 10 most slapped recently  2 months ago '22        #5
Booda Sack  topics gone triple plat - Number 1 spot x5
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What a retard “price controls”

We have laws they just aren’t enforced
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 2 months ago '20        #6
Xiox  topics gone triple plat - Number 1 spot x1
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We do need price controls because all the power companies , all the internet & cable TV companies , oil companies , food suppliers are raking in massive profits while the PUC & every other regulatory agencies co-sign all the hikes . Food prices , gas & electric rates are out of control but y'all think Cheeto did good on all the Tariffs he put on good from China which we are paying for . That money goes to the feds ,do we really want the feds handling more more to waste it
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 2 months ago '16        #7
kuul  topics gone triple plat - Number 1 spot x12
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Who you gonna get to enforce these laws? Most politicians stopped fu*kin with the voters decades ago. Then on top of that they use our taxes as petty cash.
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 2 months ago '20        #8
Bighempin  topics gone triple plat - Number 1 spot x2
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That ain't this and this ain't that!


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 2 months ago '15        #9
RuggedDrifter 
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So the govt. Is in bed with corporations is all I take from this.
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 2 months ago '16        #10
Frankie Needles  topics gone triple plat - Number 1 spot x9
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 kuul said
Who you gonna get to enforce these laws? Most politicians stopped fu*kin with the voters decades ago. Then on top of that they use our taxes as petty cash.
This is the best post on the thread...we already have laws on the books that IF properly enforced would have blocked everything the article described BUT the politicians have been bought off, so they don't enforce the rules.

None of these airline mergers should have EVER gone thru, same with the big pharma mergers....I hate anything resembling socialism so no price controls aren't the answer BUT I'm not sure what to do if those in charge don't enforce the laws
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 2 months ago '17        #11
DavidTheMan  topics gone triple plat - Number 1 spot x1
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Inflation is caused by the dollar supply.
So no, very simply, inflation isn't caused by corporate greed or any corporate action.
It only occurs by government action.

I'd also say corporate greed is the same when a supply is non-inflationary as when it is inflationary, so to blame greed when greed is ever present and a constant on a logical level is faulty.

The 2nd point to the greed argument, is that greed would act against inflation, because it hurts the company in the longrun as its harmful to shareholders, owners, savers, and those who run companies with a goal of maximizing profits. Corporate greed would likely see there being little inflation.

Which funnily enough, when Volker bit the bullet and k*lled inflation in the 80s, the media and you nouvo-socialists were claiming that was because he was a pawn of the evil corporations. So which one is it, is deflation corporate greed or inflation?

 2 months ago '07        #12
Damagegadget  topics gone triple plat - Number 1 spot x1
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Poor low wage racists the only like defending rich people

We knew record profits doesn’t justify price gouging
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 2 months ago '17        #13
Naga Sadow  topics gone triple plat - Number 1 spot x23 OP
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 Damagegadget said
Poor low wage racists the only like defending rich people

We knew record profits doesn’t justify price gouging

+1   



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