Once a Fringe Theory, 'Greedflation' Gets Its Due

Wednesday, May 24, 2023

The idea that profits drove our current bout of inflation surfaced in the last few years among progressive economists and lawmakers but was waved away by more mainstream types as a "conspiracy theory."

Posted by GrimReaper at 07:33 AM | 12 COMMENTS | permalink | Comment on This Entry |

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A column in Bloomberg Opinion drew attention to increasing profit margins and urged consumers to push back. "The idea that corporate profit expansion has been a big driver of inflation was once mostly confined to trade unions and left-wing academics, but it's now taken seriously by central bankers," the authors wrote.

By May, the Wall Street Journal published a story on how corporate profits were keeping inflation high, citing the work of Isabella Weber, an economist at the University of Massachusetts, Amherst, who was derided for her work on the topic back in late 2021.

In a stunning comeback this month, The Times of London profiled Weber's rise from a lone voice to star economist who's drawn attention to the notion that companies and certain sectors can drive inflation -- she calls it "sellers' inflation," not greedflation. "Suddenly everybody wants to know how to think about inflation differently," Weber tells Axios.

All one had to do was look at the record quarterly corporate profits over the last few years in order to draw the logical conclusion that much of inflation was driven by profiteering. Here's the receipts.

#1 | Posted by GrimReaper at 2023-05-23 08:24 AM | Reply | Newsworthy 2

DR Conservatives will avoid this thread.

It has to be Biden's fault somehow...

#2 | Posted by Sycophant at 2023-05-23 09:43 AM | Reply | Funny: 1

"DR Conservatives will avoid this thread."

Republicans like inflation.

Republicans love to complain about it, Republicans love to blame Democrats for it, and Republicans never, ever have any plans to actually reduce it.

The other reason Republicans like inflation is it means the rich are getting richer. And Republicans think when the rich get richer, it is better for everyone. Even when the rich get richer simply through transfers of wealth from the poor to the rich, like they're doing now with raising prices.

#3 | Posted by snoofy at 2023-05-23 09:50 AM | Reply | Newsworthy 3

Greedflation is real...

Just look at the price of eggs.
Up over 70% at their highest.

No amount of 'shipping problems'
could explain that.

As I've said before, and shall continue
to say, "the social contract between the
rich and the middle class is dead".

It used to be that the rich had boundaries,
that they knew if they crossed, most of the
country would cry foul and immediately suggest
raising their taxes.

Now, 40% of the country are Republicans, half of
whom ARE RICH, and the other half of which, couldn't
tie a shoe lace if you told them how...

#4 | Posted by earthmuse at 2023-05-24 10:50 AM | Reply | Newsworthy 1

It is Biden's fault, he should have imposed price controls like Nixon, snark.

#5 | Posted by mattm at 2023-05-24 10:51 AM | Reply | Funny: 1

The lack of smarts and knowledge of whom to blame
amongst the poorer GOP, is why there is no longer
any corrective force against the excesses of the rich.

Well that, and the utter destruction of unions in this
country, the only force (for better or worse) that had the
legal power to contest the rich in court...

#6 | Posted by earthmuse at 2023-05-24 10:52 AM | Reply | Newsworthy 1

#1 | Posted by GrimReaper

Absolutely. Under COVID it became especially apparent. The word Transitory was used and it COULD have been transitory but has turned into a money grab pure and simple.

#7 | Posted by GalaxiePete at 2023-05-24 11:40 AM | Reply

It is no 'conspiracy theory'. Greedflation is an obvious factor in the major increase in prices on consumer items. Corporations, big and small, squeezing out as much profit as they can from the working class.

#8 | Posted by moder8 at 2023-05-24 12:59 PM | Reply | Newsworthy 3

They all called us crazy for pointing out the obvious!

#9 | Posted by rstybeach11 at 2023-05-24 02:08 PM | Reply

It's price gouging and profiteering, both are illegal.
Start throwing CEO's and executive asses in "pound you in the ------ prison" for their crimes and the prices will start dropping like a rock.

#10 | Posted by a_monson at 2023-05-25 07:50 AM | Reply

I don't understand how you are throwing this at the feet of "rich" people. If a farmer can sell his or her eggs for 70% more than at a previous time, why wouldn't they?

Do you hold to task those people who sole their cars during the pandemic because there was such a high demand? Or for airlines charging what I think it far more for tickets?

Here is some more info on the egg shortage, if you're interested.

www.msn.com

#11 | Posted by madbomber at 2023-05-25 11:31 AM | Reply

If you ever doubt Greedflation, just remember that the next time you get a raise.
See what % your raise went up, and then look for the 'cost of living' to follow
suit in lockstep...

Need to kill the GOP at the polls. The party of corporations and CEO's.
Vote like every election is the last. Because for the American Middle Class,
it may well be...

#12 | Posted by earthmuse at 2023-05-25 11:39 AM | Reply