BeaverFever Posted November 6, 2022 Report Share Posted November 6, 2022 As usual the role of corporate greed in driving inflation is under-reported in the media and completely ignored by lawmakers , even when their committees call it out Subcommittee Analysis Reveals Excessive Corporate Price Hikes Have Hurt Consumers and Fueled Inflation, While Enriching Certain Companies Nov 4, 2022 Press Release Analysis Shows that Shipping, Rental Cars, Meat Processing, and Oil and Gas Industries Have Raked in Record-Breaking Profits “Today’s analysis reaffirms what an overwhelming 80% majority of Americans already recognize according to a recent poll: under the guise of inflation, certain corporations excessively hiked prices far beyond what their costs necessitated, further driving inflation. As American corporations report their highest profit margins the United States has seen in over seventy years, executives of leading companies are admitting on earnings calls that they’re taking advantage of inflation. One executive argued that ‘a little bit of inflation is always good in our business’ while another admitted that his company’s prices wouldn’t fall with decreasing costs, stating ‘we don’t reduce prices on the back end of these increases.’ It is unacceptable that certain companies and industries are engaged in extreme price hikes under the cover of inflation. Americans understand this is happening, and they want it to stop. We have an obligation in Congress to shine light on this practice, which is exactly what today’s analysis does” … The Subcommittee’s analysis of financial information from a sampling of the largest corporations in several industries shows massive increases in profits between 2019 and 2021: Three of the five largest companies in the shipping industry saw profits rise by 29,965%; The two largest public companies in the rental car industry enjoyed a profit increase of 597%; Four of the largest public companies in the meat processing industry saw profits go up by 134%; and Four of the ten largest public companies by market cap in the oil and gas industry had profits rise by 62%. …. Corporate statements confirm that certain corporations are seeking record profits. Statements from corporate executives in certain industries show they are exploiting news about inflation to raise prices even more than necessary to cover costs. For example: “[A] little bit of inflation is always good in our business.” (Kroger, June 18, 2021) “[W]e’re actually pricing to recover all of those inflationary impacts, just as we’ve done in the past. So you’ve seen us move retail prices up. As inflation has moved up mid-single digits, our pricing has moved. . . . And as I’ve said before, inflation has been a little bit of our friend in terms of what we see in terms of retail pricing. [F]ollowing periods of higher inflation, our industry has historically not reduced pricing to reflect lower ultimate cost.” (Autozone, May 25, 2022) “[O]ur total pricing actions are forecasted to more than offset raw material and delivery cost increases. We are closely monitoring supply costs and other inflation, and we’re prepared to implement further increases as necessary. . . . [W]e don’t reduce prices on the back end of these increases [in underlying costs].” (HB Fuller, June 23, 2022) https://oversight.house.gov/news/press-releases/subcommittee-analysis-reveals-excessive-corporate-price-hikes-have-hurt Quote Link to comment Share on other sites More sharing options...
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