Are corporate profits driving inflation?

There are two commonly-accepted aspects of economics that determine prices: supply and demand. But some say a third factor is companies' pursuit of increased profits in the midst of supply-and-demand chaos stirred by war and pandemic. Correspondent David Pogue talks with former Treasury Secretary Larry Summers, former Labor Secretary Robert Reich, and economist Mike Konczal about the legitimacy of corporate avarice

#inflation #profits #capitalism

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[meng-hsuanlee]

Yes, yes, and yes. Not enough people talk about corporate price gouging but too many blame it on the stimulus checks that actually helped people stay afloat. We should start calling these corporations CARTELS, because that's what they are.

[daverizz]

Personally, I think you're maybe letting corp execs and their greed off a little bit easy in this piece. And not drawing a clearer line of what government can do to specifically target and counter-balance that greed.

[letsgoOs]

we gave them billions in PPP loans and very few of that went to employees. but instead went to executive pay and they held onto it. now hundreds of billions was minted but not injected into the economy.

[Sundayjean]

It’s funny that all the images of “hiring” are related to low income jobs. We have to do a better job at looking at job growth or unemployment. It does not tell the whole story and just points to the privilege of the high wage earners of the economists. They have lost touch with the realities of older workers who have had to deal with agism, individuals with disabilities who can’t even get hired. The super low cap on additional income for those who have been forced to take early retirement or SSI.
The inequity since the 1980s is killing the “American Dream”

[kathrynw]

This started in 2018 (even 2017 to some degree) and big companies were right there in the mix of it; less product for same money, then they raised the situation with same money for less product and now more money for less product. It's been coming and then pandemic came along and the big companies let it hit and everyone jumped on board with the domino affect running over all of us. People adjust then more hits. Big companies run this country, always have.

[suezbell]

Citizens United mistakenly gives corporation the rights of "people" (including to lobby government and inve$t in politicians) without any of the reasonable ethical or moral responsibilities of actual people. That ruling needs to be reversed.

[dianeyoung]

Corporate profits are up 25% across the board. We have the highest inflation in 40 years and the highest corporate profits in 50 years.

[su]

In fact greed in many areas will be the downfall of our country

[duncanbleak]

"Greedflation" is the perfect term.

[jonesyokc]

I am also curious about companies withholding product in an attempt to drive up prices. The only thing better for business than supply chain issues is fabricating these issues. You can cut back on staff and hours, reduce the amount of product you produce, and in turn jack up prices. This is what happens when companies are allowed to merge out competition. There is no accountability in our supposedly free market economy. Mom & pop shops have been wiped out. Our nation is dominated by franchises which are controlled by a few people. We get badly overcharged for inferior quality products. Nothing illustrates this more than our supermarkets. They are filled with junk at high prices. Our produce is embarrassing and a serious rip off. Our breads? Junk. Our deli meat? Junk would be an improvement. Having aisle after aisle of garbage to buy doesn't make us great and powerful. It makes us suckers.

[reneemoreno]

That's why they have eliminated most small mom and pop stores...to monopolize the market.

[heidihill]

Let's get real there is so much greed on Wall Street and corporations.

[suezbell]

A lot of greed has been sprinkled on top.

[LA-kcev]

I am no economist (as will likely be quickly evident), but if companies have higher profits than ever, why are most of the stocks in my retirement portfolio down?

[Dangic]

Stimulus money given to the big corporations caused this.

The stimulus money that went to peoples hands had no effect.

[generatorjohn]

If corporations are "profiting" then why are most people's portfolios down over 15 %???

[LLandonJensen]

Freight charges are "gastronomical"? 🧐

[sambistabeauty]

4:22 "Corporations are not people.." unless it is convenient. When it IS convenient, then corporate entities ARE people.

[olzt]

The huge problem with capitalism is that no one knows how much profit is too much. The assumption is that if someone buys something at 12, 000 times the cost to make then the sale is a good one. But too much profit has a negative effect on the economy just like too little profit has a negative effect. And with that said, people with low morals really don't care. They just place themselves as the most important being on the planet.

[savannahm.laurentian]

How is this even a question? Pandemic price-gouging went unchecked.