There is no single cause for inflation, which reached an annual rate of 8.5% in March. That's the fastest increase in prices since 1981. There are continuing problems with supply chains, rising prices for raw materials, and limited supply. There is a tight job market, which increases costs for labor. And, in many sectors, there is pent-up demand from the pandemic.
This info needs to be national news through all media types and more than one story to reach the masses who are still blaming covid checks as reason for inflation.
Thank you for covering this! While some cost increases have very real and unavoidable origins, it’s been clear for some time that part of this is simply corporate greed, which has no bottom. They’re like the cursed sailors from Pirates if the Caribbean, with no way to satisfy their hunger.
The inflation we’re seeing today seems to be created out of thin air by opportunistic companies salivating at how tightly they can squeeze the consumer. There has to be something that can be done here.
And yet Republicans have just about everyone (including the talking heads on CNN) convinced that the rise in prices is all President Biden's fault..............
This is well written. CEO compensation in many organizations is an abuse of shareholders.
I vote against all compensation packages on the equities I own.
I think a ratio rule of 10 to 1 on all corporations would do much to breakdown our feudalistic system. That would not impose a limit but maintain an acceptable income spread for value added.
1) Unfortunately AriZona's resellers don't have the same principles. The Walgreen's next door to where I work charges $1.49 for the can. If AriZona is truly eating the cost, that means Walgreens is making 50 cents extra for no reason.
2) I think inflation is measured too broadly and that's what lets these companies raise prices and profits with nearly zero repercussion. They see the high inflation numbers and see it as an excuse to raise prices even if their specific operating costs are flat.
I talk politics with a lot of people and work in a local politician’s office. These facts are so helpful to pass along. And we can check this ourselves. Everyone needs to make this part of their discussions even among like-thinkers…it will still be overheard and passed along to some who need to hear it.
Your research is so valuable and educational. It it very much appreciated.
Thanks, Judd. It is infuriating that media 100% is on board with this inflation sham. And THANK YOU for that glimmer of hope at the end, with AZ Iced Tea... don't think I didn't notice! 😉
On the one hand, I find this just as disgusting as anyone else. On the other hand, unless any of what they’re doing is illegal, which it doesn’t seem to be, I believe this is the downside of Capitalism.
Producers/suppliers, based on what they're saying, seem to be facing a steep demand curve at the moment. So P increases have limited negative hit to Q sold. So, those P increases translate into nearly pure profit increases. (Unless they share that windfall with workers.)
It's not whether they've "gotten more greedy." That's a red herring. They've waltzed into a situation where they have more *opportunity* to capture higher profit share, at consumers' cost. And they're working that for all it's worth.
So questions: 1. What explains that steep demand curve, and 2. How to react to the pretty pathological result, institutionally?
This info needs to be national news through all media types and more than one story to reach the masses who are still blaming covid checks as reason for inflation.
And a study on where the rewards for price hikes go. Top CEO pay up 31% https://www.equilar.com/reports/90-highest-paid-ceos-2022-equilar-100.html?utm_source=join1440&utm_medium=email
Thank you for covering this! While some cost increases have very real and unavoidable origins, it’s been clear for some time that part of this is simply corporate greed, which has no bottom. They’re like the cursed sailors from Pirates if the Caribbean, with no way to satisfy their hunger.
The inflation we’re seeing today seems to be created out of thin air by opportunistic companies salivating at how tightly they can squeeze the consumer. There has to be something that can be done here.
And yet Republicans have just about everyone (including the talking heads on CNN) convinced that the rise in prices is all President Biden's fault..............
This is well written. CEO compensation in many organizations is an abuse of shareholders.
I vote against all compensation packages on the equities I own.
I think a ratio rule of 10 to 1 on all corporations would do much to breakdown our feudalistic system. That would not impose a limit but maintain an acceptable income spread for value added.
Two things:
1) Unfortunately AriZona's resellers don't have the same principles. The Walgreen's next door to where I work charges $1.49 for the can. If AriZona is truly eating the cost, that means Walgreens is making 50 cents extra for no reason.
2) I think inflation is measured too broadly and that's what lets these companies raise prices and profits with nearly zero repercussion. They see the high inflation numbers and see it as an excuse to raise prices even if their specific operating costs are flat.
Great report, Judd!
I talk politics with a lot of people and work in a local politician’s office. These facts are so helpful to pass along. And we can check this ourselves. Everyone needs to make this part of their discussions even among like-thinkers…it will still be overheard and passed along to some who need to hear it.
Your research is so valuable and educational. It it very much appreciated.
Thank you, just the facts is a very powerful way to present an argument.
Windfall tax. Every year forever.
Thanks, Judd. It is infuriating that media 100% is on board with this inflation sham. And THANK YOU for that glimmer of hope at the end, with AZ Iced Tea... don't think I didn't notice! 😉
I'm sure it's mostly this opportunistic greed, but I'm also getting a bit of a "let them eat cake" vibe.
On the one hand, I find this just as disgusting as anyone else. On the other hand, unless any of what they’re doing is illegal, which it doesn’t seem to be, I believe this is the downside of Capitalism.
I just might start drinking AriZona iced tea!
CEOs imitating Martin Shkreli
Producers/suppliers, based on what they're saying, seem to be facing a steep demand curve at the moment. So P increases have limited negative hit to Q sold. So, those P increases translate into nearly pure profit increases. (Unless they share that windfall with workers.)
It's not whether they've "gotten more greedy." That's a red herring. They've waltzed into a situation where they have more *opportunity* to capture higher profit share, at consumers' cost. And they're working that for all it's worth.
So questions: 1. What explains that steep demand curve, and 2. How to react to the pretty pathological result, institutionally?