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Drudge Retort: The Other Side of the News
Thursday, December 07, 2023

Multinationals in particular hiked prices far above rise in costs to deliver an outsize impact on cost of living crisis, report concludes. The report suggests that excessive profits, driven by a few powerful companies, have outpaced increases in costs, leading to a surge in inflation.

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People are not feeling the benefits of Biden's improved economy partly because of corporate greed.

How convenient for Trump and Republicans who are responsible for the massive tax break to these same corporations.

#1 | Posted by rstybeach11 at 2023-12-07 12:23 PM | Reply

Near every state has profiteering laws for use during public emergencies, such as a hurricane or earthquake, preventing price gouging. That is missing in the Federal laws. The only thing the Feds have is the The Defense Production Act of 1950, allowing the president to redirect manufacturing during times of emergency, which does not address profiteering. This is a case where a new law is blatantly missing and needs addressed.

That will never happen as long as corporations have voice to speak with money. They will literally buy their politicians to prevent such a law. I have advocated before and I continue to do so about corporation voice and money needing to be removed.

During the civil war, the 14th amendment was passed, ensuring civil rights for all citizens, including slaves. Because of cases before the Supreme Court, it allowed the basic follow through that corporations could be protected as well as becoming a corporate citizen. In 2010, the Supreme Court granted corporate personhood with money being their method of speech. Basically it allowed corporations to funnel money into corporate speech to buy their candidate since near no private citizen can hope to match the payouts of corporations.

This is the results of that questionable ruling allowing for corporations to become eligible for personhood. Since merger mania hit, these major corporations have gained a chokehold over raw materials and distribution of their products allowing them to jack prices with little or no options to go elsewhere and for the majority they are global in their influence.

#2 | Posted by BBQ at 2023-12-07 01:15 PM | Reply | Newsworthy 1

-This is a case where a new law is blatantly missing and needs addressed.

Get with Bernie Sanders or someone similar and see if you can get somewhere.

Good luck.....

Do you have any idea why this is so obviously impossible to happen?

Identify the industries and products you think a Federal law should prohibit or limit profits on?

#3 | Posted by eberly at 2023-12-07 01:27 PM | Reply

-People are not feeling the benefits of Biden's improved economy partly because of corporate greed.

Maybe that's because increased incomes followed by significant increased inflation isn't really an improved economy?

I'm not being critical of Biden...just getting everyone to consider the words they use.

words like "improved" and "greed".

#4 | Posted by eberly at 2023-12-07 01:29 PM | Reply

Mugwump.

#5 | Posted by LegallyYourDead at 2023-12-07 02:07 PM | Reply

"Do you have any idea why this is so obviously impossible to happen?"

Because we allow money in politics, so people with the most money use Congress to further their own personal interests.

Republicans say spending money is free speech.

#6 | Posted by snoofy at 2023-12-07 02:21 PM | Reply | Newsworthy 2

"Maybe that's because increased incomes followed by significant increased inflation isn't really an improved economy?"

Since 1975, practically all the gains in household have gone to the top 20% of households.

In other words, it isn't really an improving economy for the bottom 80%, starting in 1975.

#7 | Posted by snoofy at 2023-12-07 02:48 PM | Reply | Newsworthy 3

"Identify the industries and products you think a Federal law should prohibit or limit profits on?"

Easy.
But not the mechanism you want.
Tax Capital Gains like Labor Income.

#8 | Posted by snoofy at 2023-12-07 02:49 PM | Reply

#4 | POSTED BY EBERLY

Greedflation. It's a variable, obviously.

#9 | Posted by rstybeach11 at 2023-12-07 04:57 PM | Reply

Give Corporations Personhood under CU; essentially Super Citizenship, and what do they do?

They pay lawmakers to write laws when they can, and ignore other laws when they can't.

It's all so predictable.

#10 | Posted by Corky at 2023-12-07 05:11 PM | Reply

10

you're talking like profits are a crime and businesses should ask the government's permission to earn one.

and let the government determine what "excessive" means.

I get why States prohibit gouging during a state of emergency because you can specify what products and what time frame the limitations can be enforced.

But just deciding that any company is breaking the law for making money is......well, absurd.

How is money in politics driving the price of the whatever you're pissed about paying for?

It's already a legal act to make something and sell something and......yes, earn a profit. It didn't require lobbying to do that.

Now, I'm not talking about regulated industries like healthcare, utilities, etc.....

#11 | Posted by eberly at 2023-12-07 05:20 PM | Reply

9

so you can't identify any industries or products?

should be easy........

#12 | Posted by eberly at 2023-12-07 05:22 PM | Reply

#11 | POSTED BY EBERLY

With that line of thinking, why didn't corporations do this earlier? Why guise the greedflation as a symptom of COVID?

#13 | Posted by rstybeach11 at 2023-12-07 05:23 PM | Reply | Newsworthy 1

#12 | POSTED BY EBERLY

It's in the study highlighted by the article:

According to a recent study, the following industries have been cited as examples of corporate profiteering that have significantly boosted global prices, contributing to the concept of "greedflation":

Energy: The report highlighted the role of energy companies, such as ExxonMobil, in generating excess profits through high market power and global market dynamics.

Technology: Firms in the technology sector were noted for pushing through significant price increases that raised their profit margins.

Telecommunications: Companies in the telecommunications industry were also identified as having increased prices to raise their profit margins.

Banking: The banking industry was mentioned as another example of a sector that pushed through significant price increases to generate excess profits.

Food and Beverage: Specific companies in the food and beverage industry, such as PepsiCo, Tyson Foods, and Procter & Gamble, were cited for driving inflation higher through price increases.

Retail: Grocery store chains and fast-food restaurants, such as Starbucks and Burger King, were noted for raising prices to increase their margins.

#14 | Posted by rstybeach11 at 2023-12-07 05:32 PM | Reply | Newsworthy 2

11

The Crime, Bev, is allowing corporations and individuals, who are usually also several corporations, to secretly spend untold millions to pay lawmakers to write laws that benefit said corporates.

This isn't rocket science.

#15 | Posted by Corky at 2023-12-07 05:42 PM | Reply | Newsworthy 2

"But just deciding that any company is breaking the law for making money is......well, absurd."

We had usury laws from the Founding until the 70s.

Apparently that was absurd. How did America even function with the government deciding how much interest can be charged?

That's a real question, Eberly. What was the problem with usury laws, and why did it need fixing?

#16 | Posted by snoofy at 2023-12-07 05:57 PM | Reply

Tax Capital Gains like Labor Income.
#8 | POSTED BY SNOOFY

Why should I pay labor rates for selling my home?

#17 | Posted by oneironaut at 2023-12-07 05:59 PM | Reply

"Why should I pay labor rates for selling my home?"

Good point, you should be taxed more and labor should be taxed less.

That would encourage both home ownership and labor.

#18 | Posted by snoofy at 2023-12-07 06:01 PM | Reply

@#17 ... Why should I pay labor rates for selling my home? ...

I'd proffer a different type of tax for a house you live in, i.e., as your current alias calls it - home, than a labor tax.

On the other hand, owning a house is an investment, I out money into the house, and I do hope to get out of the house more than I put into it.

But that is a minor side issue compared to the low, low tax rates of long-term capital gains taxes on appreciated stock holdings, and even the ability to deduct stock loses from income.

#19 | Posted by LampLighter at 2023-12-07 06:44 PM | Reply

-With that line of thinking, why didn't corporations do this earlier?

Fair question.

Now answer it

#20 | Posted by eberly at 2023-12-07 07:56 PM | Reply

Fair question.
Now answer it
#20 | POSTED BY EBERLY

It would be inadvisable to raise prices while a Republican is in office.

Much better for corporations to raise prices while a Democrat is in office, so low information voters blame Democrats, thus increasing the chances for a Republican to be the next President, thus increasing the likelihood of favorable tax regime for business and rollback of regulations on business.

#21 | Posted by snoofy at 2023-12-07 08:14 PM | Reply | Funny: 1

I'd proffer a different type of tax for a house you live in, i.e., as your current alias calls it - home, than a labor tax.

These already exist I get to save $500,000, BIG DEAL, yet I still will pay capital gains on anything over that unless I buy another home.

Proffer again.

On the other hand, owning a house is an investment

Yeah nah. Its not an investment instrument to save money. It's a way to hopefully save money in the long run. But it allows freedom to put things on the walls, paint the exterior to your liking.

There is little to no risk, TAXES are paid on it yearly.

What investment do you pay taxes on yearly that you haven't realized?
Cars? Planes? People don't have to sell investments because they changes jobs, or move to a new location.

But that is a minor side issue compared to the low, low tax rates of long-term capital gains taxes on appreciated stock holdings, and even the ability to deduct stock loses from income.
#19 | POSTED BY LAMPLIGHTER

Its not minor, more people buy and sell homes than hold onto long-term stock holdings.

#22 | Posted by oneironaut at 2023-12-07 08:17 PM | Reply

#21 | POSTED BY SNOOFY

Thats a hypothesis, prove it.

#23 | Posted by oneironaut at 2023-12-07 08:18 PM | Reply

@#22 ... Its not an investment instrument to save money. ...

Yup. I agree.

That is why I said in #19 ... I'd proffer a different type of tax for a house you live in ...

So, besides arguing against something that I agreed with, what else yer got?


Or is your current alias here this evening just to try to stir things up, to "own the libs" (wouldn't be the first time I deduced that from your current alias' comments ...)

#24 | Posted by LampLighter at 2023-12-07 08:42 PM | Reply

@#23 ... Thats a hypothesis, ...

A pretty valid hypothesis at that.


#25 | Posted by LampLighter at 2023-12-07 08:45 PM | Reply

14

Good response, Rsty.

#26 | Posted by eberly at 2023-12-07 09:31 PM | Reply

#26

Hey, tanks!!

#27 | Posted by rstybeach11 at 2023-12-07 09:41 PM | Reply


A pretty valid hypothesis at that.

#25 | POSTED BY LAMPLIGHTER

Is it?

It would be inadvisable to raise prices while a Republican is in office.

False, republicans wouldn't investigated why prices are rising during a Republican administration.

If a Democrat is in office, prices rising would instigate investigations. Ergo today .. morons.

Keep swinging Gaslighter, keep swinging.

#28 | Posted by oneironaut at 2023-12-07 10:53 PM | Reply

@#28 ... False, republicans wouldn't investigated why prices are rising during a Republican administration.

If a Democrat is in office, prices rising would instigate investigations. Ergo today .. morons. ...

Huh?

Your comment seems to provide substantiation for what I asserted.

Republicans don't care.

Democrats do care.

That appears to be what our comment states.

Your current alias either needs to obtain a better grasp of English or find a better Russian to English translator. imo, of course.




#29 | Posted by LampLighter at 2023-12-08 01:21 AM | Reply

Then it should be easy for new businesses to emerge and undercut all the price gouging companies that are overcharging everyone and ultimately put those companies out of business or at least force them to lower their prices. Something tells me this study is completely bogus and that's not the real issue we're facing though.

#30 | Posted by THEBULL at 2023-12-08 03:09 AM | Reply | Funny: 1

"Then it should be easy"

Yeah. It should be easy. Sow us how it's done.

#31 | Posted by snoofy at 2023-12-08 03:28 AM | Reply

Why don't you do it since you're the one convinced that's what's happening, not me.

#32 | Posted by THEBULL at 2023-12-08 08:07 AM | Reply | Funny: 1

Researchers said the energy companies ExxonMobil and Shell, mining firms Glencore and Rio Tinto, and food and commodities businesses Kraft Heinz, Archer-Daniels-Midland and Bunge all saw their profits far outpace inflation in the aftermath of Russia's invasion of Ukraine.

^^ all of these energy and ag based companies got more profitable during a global energy and agriculture crisis? Holy. ----.

#33 | Posted by sitzkrieg at 2023-12-08 11:58 AM | Reply

Guess we all have to start buying as much food as we can from local farmers.

#34 | Posted by Tor at 2023-12-08 01:09 PM | Reply

#34

Yes.

#35 | Posted by Whatsleft at 2023-12-08 05:15 PM | Reply

And in the long run, the best way to defeat the fossil fuel cartels will be by creating as much renewable energy as possible. Though it's going to be an expensive fight.

#36 | Posted by Whatsleft at 2023-12-08 05:17 PM | Reply

The biggest study of greedflation' yet looked at 1,300 corporations to find many of them were lying to you about inflation
fortune.com

#37 | Posted by rstybeach11 at 2023-12-08 11:40 PM | Reply | Newsworthy 2

all of these energy and ag based companies got more profitable during a global energy and agriculture crisis? Holy. ----.
#33 | POSTED BY SITZKRIEG

Now do the other 1,293 corps acknowledged in #37.

#38 | Posted by rstybeach11 at 2023-12-08 11:43 PM | Reply

I don't have that kind if free time. What I want to know is why they didn't do it before the feds printed trillions.

#39 | Posted by sitzkrieg at 2023-12-09 07:09 AM | Reply

But grocery store prices are what is going to sink Biden, after Bidens massive handouts to big ag that were supposed to prevent the inflation Biden said wasnt real in the first place. Best to not whatabout on it.

#40 | Posted by sitzkrieg at 2023-12-09 07:12 AM | Reply

To go a bit further, why are the other 66% of listed US companie, and 90% of listed UK companies NOT profiteering when it's so apparently easy? Strong morals from public corps?

#41 | Posted by sitzkrieg at 2023-12-09 07:28 AM | Reply

"What I want to know is why they didn't do it before the feds printed trillions."

They did. They just didn't do it as much or as often.

Inflation has always existed. Economists say it's good.

#42 | Posted by snoofy at 2023-12-09 08:44 AM | Reply

"Archer-Daniels-Midland"

I think those are the guys who can't come to the US or they'll get arrested for price fixing.

#43 | Posted by snoofy at 2023-12-09 08:52 AM | Reply

Greedflation.

#44 | Posted by AMERICANUNITY at 2023-12-09 10:23 AM | Reply

#41

Some examples of profiteering include the pharmaceutical industry's exploitation of regulatory classifications to raise prices, as well as businesses exploiting supply chain bottlenecks, foreign conflicts, and pandemics to drive record profits at the expense of consumers. On the other hand, many businesses choose not to engage in such practices and may prioritize ethical pricing and fair market behavior. The decision to refrain from profiteering can be influenced by a company's values, market competition, regulatory environment, and consumer expectations. So, while some entities may engage in profiteering, others opt for responsible and ethical business conduct. Yeah, it's a thing. LOL

#45 | Posted by rstybeach11 at 2023-12-09 04:22 PM | Reply

__________
Study: Corporate Profiteering Significantly Boosted Prices

Sure, another cherry-picked "study" to "prove" the same nonsense other similar debunked studies have "proved" - they pop up every couple of months and make the same flawed points the previous ones did.

It's not surprising that left-leaning publications like The Guardian don't question the so-called "research" (often sponsored by anti-business groups or "academics" looking to "publish, not perish") about previously debunked nonsense called "Greedflation" - which cherry-picks the data (e.g., specific time periods affected by exogenous events and the pricing from trough to peak profitability, and volatile supply-demand-priced commodities and commodity-related industries like CPG) and then puts the cart before the horse claiming that the companies caused inflation by increasing prices and having their "record profits" while they were just maintaining gross profit margins and passing the input costs along to end-users such as other businesses (B2B) and/or eventually consumers, i.e, higher nominal non-inflation-adjusted profits were mainly the result of higher inflation, i.e., higher input costs, which in many cases also included mandated "minimum" or temporary higher wages due to supply constrains, while gross profit margins (relative to COGS) remained about the same.

GPMs are easy to check, and that's why you see politicians publicly complaining about "profiteering" but not dragging industries' CEOs to hearings on the Hill, where it could be easily shown with one sheet of paper per company why "greedflation" is a stupid concept.

Without going through each company PL statements and balance sheets (which I have done here before, for some specified in reports / stories) here's the data tables and charts from BLS that would broadly show the correlation of PPI (Producers Price Index) and CPI (Consumer Price Index) :

www.bls.gov - 12-month percentage change, Consumer Price Index, selected categories

www.bls.gov - PPI for final demand, 12-month percent change, not seasonally adjusted

But I am sure that in another month or two there will be another "research" paper which will be dutifully published in The Guardian, NYT, LAT etc., and then discussed here as "proof" of "evil capitalist greedflation" in the USA.

It's easy to push the narrative of "Greedflation" and "greedy corporations" or "capitalism" because most people in the US are economically and financially illiterate or miseducated:
"Are you financially illiterate? Suze Orman says 'probably 95%' of Americans are" - www.cnbc.com - CNBC, November 3 2023
__________

#46 | Posted by CutiePie at 2023-12-10 11:54 PM | Reply

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