A study by think tanks IPPR and Common Wealth found that some of the world’s biggest companies engaged in profiteering, causing prices to rise significantly higher than costs during 2022. The report, which looked at 1,350 firms across the U.S., the U.K., Europe, Brazil, and South Africa, revealed that company profits increased by 30% between 2019 and 2022, outpacing inflation. In the U.K., 90% of profit increases were concentrated among just 11% of publicly listed firms, while in the U.S., a third of publicly listed firms drove most of the profit increase. Energy companies like Shell, Exxon Mobil, and Chevron, as well as food producers like Kraft Heinz, were identified as some of the biggest profit gainers. The study also highlighted the role of major businesses in driving up inflation last year.
The official narrative, as presented in The Times article titled “The ‘greedflation’ myth shows how emotion rules the roost” by Ryan Bourne, attempts to downplay the notion of “greedflation,” dismissing it as an emotional exaggeration rather than a systemic issue. This narrative seeks to redirect blame from corporations to emotional responses, obscuring the true drivers of economic disparity and inflation. The mainstream view attempts to paint a picture of benign market forces rather than acknowledging the orchestrated mechanisms at play.
However, a deeper examination reveals a different reality. Democratic Senators like Jacky Rosen, Sherrod Brown, Tammy Baldwin, and Bob Casey have supported legislation based on the “greedflation” narrative to blame inflation on private businesses. The mechanism for government spending leading to inflation involves creating new money when spending exceeds tax revenue. Casey and others have tried to blame rising prices on corporate greed, but data shows that corporate profits have remained relatively flat. Harvard economist Alberto Cavallo’s study indicates that the recent inflation surge is mainly due to increases in manufacturing costs rather than greed.
The issue of “greedflation,” highlighted in the article from internationalbanker.com, uncovers a web of factors driving price hikes beyond natural economic cycles. This phenomenon, where companies raise prices to boost profits far above inflation rates and costs, is not merely a result of market forces but a deliberate strategy employed by major corporations. Pent-up demand post-pandemic, supply-chain constraints, monetary policies, and geopolitical events like the war in Ukraine and West Asia all play into the hands of these profit-seeking entities. Efforts to combat greedflation through political action, such as US Senator Bob Casey Jr. targeting major companies like Amazon, Target, and Walmart, shed light on the orchestrated nature of this economic manipulation.
The implications of greedflation are dire, disproportionately affecting ordinary citizens who bear the brunt of artificially inflated prices. Large corporations, under the guise of market dynamics, exploit various global events to drive profits at the expense of the average consumer. This systemic manipulation not only erodes trust in economic systems but also widens the wealth gap, perpetuating cycles of inequality and financial instability. The intent of these corporations, facilitated by complicit lawmakers, is clear: to amass wealth and control at the expense of societal well-being.
Looking ahead, the trajectory of greedflation intertwines with the broader historical narrative of power consolidation and control through economic means. If left unchecked, this pattern of exploitation will lead to further consolidation of wealth and influence in the hands of a few, solidifying the grip of the New World Order on global economies. Awareness and action are crucial to disrupt this cycle and pave the way for a more equitable and just future for all.
