Corporate greed, not wages, is behind inflation. It’s time for price controls.

SeniorBen

SeniorBen

Senior Member
"Corporations are using rising costs as an excuse to increase their prices even higher, resulting in record profits. We need limited price controls to break this cycle," says Robert Reich, former Secretary of Labor under Bill Clinton.
https://www.theguardian.com/commentisfree/2022/sep/25/inflation-price-controls-robert-reich

Is that a good idea? Should we just let corporations continue to gouge us? Is there another solution? How about a windfall profits tax? Inquiring minds want to know.
 

Large corporations do tend to lose sight of the customer and their staff as profits roll in, but in a free market that can be a company's undoing. Here in the UK we have just had a classic case of profits before people reversed, due to market forces.

To drive a truck in the UK you need a special licence, it's referred to as an HGV licence. (Heavy Goods Vehicle.) A chronic shortage of such drivers has led to an astronomical rise in the pay being offered to HGV drivers, led by the supermarkets.
Waitrose Supermarket offer truckers up to £54K, more pay than lawyers.

Whilst I agree that corporate greed is far from helpful, I am glad to live where market forces are something to be reckoned with.
 
I seem to remember some prez implementing price freeze's,
back in the day I was a kidling...cannot remember how it was
done exactly...but "democratics" aside, no controls mean max profit for owners and stock holders, and a whole lot less for
the average worker IMHO!!!
 
It's been said, "The business of America is business."

Strange, I always thought the business of America was taking care of its citizens. Think some sorting out is needed. Corporate greed is running and ruining America. Not certain how the reining in of corporate greed can be done. Anymore it seems the fed is impotent.

Need a Robin Hood to come out of the forest for us.
 
It's going to take a substantial Recession to restore some balance to our economy, And that is exactly where we are headed. There may be some improvement in the next couple of months due to consumer spending for Christmas, etc., but then, the bottom may fall out and 2023 could be a repeat of 2008....or Worse.
 
hawkdon said:
I seem to remember some prez implementing price freeze's,
back in the day I was a kidling...cannot remember how it was
done exactly...but "democratics" aside, no controls mean max profit for owners and stock holders, and a whole lot less for
the average worker IMHO!!!
Click to expand...
So who are these evil, greedy "owners and stock holders"?? Well, if you have an IRA or 401k, or receive a company pension (which are virtually all funded by investments in stocks and bonds), you are. If you have an investment portfolio out side of those specific types, do you not try to maximize your return? How dare you!
 
Where the public have a choice, they should boycott the companies which charge extortionate prices. There is constant competition between supermarkets, all trying to attract our custom. Personally, I'm also wary of ethics. There are certain shops I refuse to patronise because I don't like their attitudes to animal welfare, slave labour, etc.
 
Wait until the first quarter of ‘23. I believe that’s when the inflation rate will gain momentum. Over spending by the government hasn’t helped. The money that was handed out during the pandemic allowed many people to go on a spending spree. Raw material costs have increased significantly and along with wage increases have caused prices to rise. It is likely that there is some gouging going on.
 
Certainly corporate greed is a factor, but demand for goods and services does impact pricing. If two people are bidding on an object, the higher bid wins. Price controls are a non starter, imo. That was tried in 1971 and corporations were quick to freeze pay increases, as in no raises in 1972 for me.
 
SeniorBen said:
"Corporations are using rising costs as an excuse to increase their prices even higher, resulting in record profits. We need limited price controls to break this cycle," says Robert Reich, former Secretary of Labor under Bill Clinton.
https://www.theguardian.com/commentisfree/2022/sep/25/inflation-price-controls-robert-reich

Is that a good idea? Should we just let corporations continue to gouge us? Is there another solution? How about a windfall profits tax? Inquiring minds want to know.
Click to expand...
I agree, the real inflation is bad enough, but corporations are gouging for all it's worth. This made me think of wage & price controls like that which Nixon enacted. However, that was just a short term band-aid, and did no real good.
If there were a way to require prices of goods to be somehow justified by data showing an actual increase in manufacturing cost, then that would be something.
 
Years of zero interest rates for our financial elites was like a Pyramid scheme with the rest of we victim American peons now left holding a shriveled bag with the Pandemic and predatory real estate corporations, gasoline for that fire.
 
ElCastor said:
Nonsense! If corporate greed was behind inflation, why now? Why not during previous administrations? Why not all the time? Inflation is a product of too much government generated money chasing too few goods.
Click to expand...
The skyrocketing inflation began before the current administration's stimulus bill was passed. We would have seen this inflation no matter who took office. And the entire world is experiencing high inflation.

The stimulus checks no doubt had an effect and fueled inflation, but what we have is a hot economy with a shortage of goods. That is the driver of inflation.

That said, sending all these checks out to everyone, regardless of their need, was insane.
 
Nathan said:
I agree, the real inflation is bad enough, but corporations are gouging for all it's worth. This made me think of wage & price controls like that which Nixon enacted. However, that was just a short term band-aid, and did no real good.
If there were a way to require prices of goods to be somehow justified by data showing an actual increase in manufacturing cost, then that would be something.
Click to expand...
A windfall profits tax would be effective. It would take away incentives to raise prices just to boost profits.
 
I don't think that there is one factor to blame for this inflation. I think there are several. You talk about greedy corporation, well perhaps. There are also a lot of other factors that might be needing blame. The government in my country gave many people $2,000 each month. Many of those folks went and spent the money on expanding their cottages in the woods. The banks were borrowing money with almost zero interest so folks borrowed like crazy. There were bidding wars on homes. If the asking price was $500,000 house buyers came around offering $20 thousand or $30 thousand or even more above and over the asking price. Don't tell me this has not caused inflation?

Our government is a poor example to follow. They are printing money all the time so the value falls. If the government knows no limit to spending, the "peons" living in that country follow and they too spend money like "there is no tomorrow."

Whatever the cause I feel sorry for the single ladies out there with children. I believe there will be a recession. When I go to the grocery store and see fruit up around $7 or $8 dollars that used to be $3 or $4, I don't buy and I'm better off than some of the single parents out there.

My wife used to tell me that in England they used the "smoke screen" to hide big issues. The media would start talking about fox hunting or what to do with the badgers to cover up the real issues. In my country, the media loves to follow the government and talk about gender equally or First Nations Rights rather than what they are going to do with inflation. Perhaps they don't know. 2023 will be an interesting year.
 
The US government jacked up the money supply in 2020 and 2021 (27% increase). Too much money chasing too few goods = inflation.

To put that in perspective, that is the biggest jump in the money supply in America’s history. That is bigger than the Financial Crisis of 2007-2008 (10%), bigger than World War II (18%), and bigger than FDR’s stimulus to fight the Great Depression (10%).

https://www.wheaton.edu/academics/a...articles/2021/understanding-the-money-supply/

Robert Reich hates capitalism, always has, and he's reliably wrong about almost everything he writes about.
 
@hawkdon Back way early in the 70s...71? maybe...Nixon imposed price controls.

And yes, corporate greed is a big, big part of inflation. Never mind what people need, the shareholders call the shots.
 


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