Corporations Are Using Inflation As An Excuse To Jack Up Prices For Consumers

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Published on 28 Nov 2021, 20:00
Prices for American consumers are continuing to rise, but they aren't rising as fast as corporate profits. Corporations typically use periods of rapid inflation to pad their bottom lines and raise prices arbitrarily, and this time is no different. Before-tax profits topped $3 trillion in the second quarter of this year, and they aren't showing any signs of slowing down, even as consumers feel the squeeze. Ring of Fire's Farron Cousins discusses this.

Link - businessinsider.com/corporatio...

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

We all know that consumer prices are going up right now. We know we've got supply chain shortages. We know people are paying more for goods and services, gasoline, milk, as we all knew from that viral tweet a couple of weeks ago. But did you know that at the same time that all of these prices are going up, do you know what's going up even faster? Corporate profits. For the second quarter of the year 2021 corporate profits reached an all time high of more than $3 trillion and they continued going up for the third quarter of this year, right in the middle of the supply chain crisis. You know, the inflation, everything is so horrible and bad and expensive, but corporate profits somehow continue to go up, which doesn't make any sense when you consider what's driving the inflation, which is supply shortages, production slowing down and not able to keep pace. So that would indicate that corporations would have to pay more for the goods that they then sell to us.

But considering the fact that their profits are going up at the same time our prices are going up, that kind of blows that out of the water a little bit. And according to the Wall Street Journal, this is actually very common here in the United States. Typically when there are periods of intense sudden inflation like this, the Wall Street Journal says, corporations have historically used that as an opportunity to also raise the base prices. So even after inflation ends and prices come back down, they're still higher than what they were before, because they can. Not because they need to. Not because they have to. Not because things are more expensive. But just because hell, we can. It's still lower than what it was during inflation. It's more than we had. We make more money, people get screwed. That's what they're doing right now. Listen to this. This is from Business Insider. What we are, what we are very good at is pricing says, Colgate Palmolive CEO Noel Wallace. Whether it's foreign exchange inflation or raw and packing material inflation, we have found ways over time to recover that in our margin line.

We've been very comfortable with our ability to pass on the increases that we've seen at this point, Kroger CFO Gary Millerchip said in October, and we would expect that to continue to be the case. So they're admitting that, eh, you know, things are going up, but hey, we're going to go ahead and raise our prices too. So don't you worry about us. Things are better than ever for corporations. So yes, we do have inflation and that is a problem and yes, prices would still be higher than usual. But corporations take these opportunities to raise prices even more than they should be for us, not just because they want to recoup their losses, but because they just want to pad their bottom lines and the profit margins they're pulling in right now are proof of that. They're screwing us over intentionally and president Biden gets all the blow back from it. We know who the real villains are in this story. They're not sitting in Washington, DC. Well, their lobbyists are. Their corporate political donations are. But the real villains are sitting in board rooms across the country.
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