{"id":1951747,"date":"2023-06-20T11:01:04","date_gmt":"2023-06-20T15:01:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/not-inflation-greedflation-corporate-profits-soar-as-companies-jack-up-prices\/"},"modified":"2023-06-20T11:01:04","modified_gmt":"2023-06-20T15:01:04","slug":"not-inflation-greedflation-corporate-profits-soar-as-companies-jack-up-prices","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/not-inflation-greedflation-corporate-profits-soar-as-companies-jack-up-prices\/","title":{"rendered":"Not Inflation, \u2018Greedflation\u2019: Corporate Profits Soar As Companies Jack Up Prices"},"content":{"rendered":"

22<\/div>SHARES<\/span><\/div>

<\/span>Facebook<\/span><\/a><\/span>Twitter<\/span><\/a>

After COVID came and mostly went, suddenly, prices began to rise. The cost of nearly everything soared, especially eggs, a dozen of which eventually cost<\/a> more than a pound of beef.<\/p>\n

Corporate CEOs \u2014<\/span> who in 2022 made<\/a> $14.8 million a year compared to the average worker\u2019s $58,800 salary \u2014<\/span> say it\u2019s all because the cost of doing business, from higher interest rates to the cost of fuel, rose. Yeah, no.<\/p>\n

\u201cHigher interest rates haven\u2019t stopped S&P companies, especially in the big food industry, from inflating consumer prices despite reporting billions in extra net earnings and over a trillion dollars in giveaways to wealthy investors,\u201d Liz Zelnick, the director of economic security and corporate power at the nonprofit Accountable.US, said in a release<\/a>.<\/p>\n

The watchdog group found \u201cmany of the largest general consumer S&P 500 companies have admitted to benefiting from increased prices as their net profits increased year-over-year and they rewarded shareholders with billions in new shareholder handouts.\u201d<\/p>\n

For instance, Accountable.US found that Tyson Foods saw its net income increase from $3 billion in FY 2021 to more than $3.2 billion in FY 2022. The mega-company turned around and delivered $1.35 billion in handouts to shareholders \u2014<\/span> $652 million more than the previous year.<\/p>\n

In addition, PepsiCo\u2019s net income soared<\/a> by 16.9% to almost $9 billion, and the company shelled out more than $7.5 billion in stock buybacks and dividends in 2022, the report said. General Mills, too, saw its income increase by double digits, 16.5%, to $2.7 billion.<\/p>\n

And amid the greedflation, there\u2019s no end in sight. \u201cSome of the world\u2019s biggest companies have said they do not plan to change course and will continue increasing prices or keep them at elevated levels for the foreseeable future,\u201d The New York Times reported<\/a>. \u201cThat strategy has cushioned corporate profits. And it could keep inflation robust, contributing to the very pressures used to justify surging prices.\u201d<\/p>\n

Greedflation has long been dismissed as a conspiracy theory, but some economists now say it\u2019s real, even as one labels it \u201cprofit-led inflation.\u201d Paul Donovan, UBS Global Wealth Management\u2019s chief economist, said there were three waves: the first caused by the COVID pandemic and the second by the Russian invasion of Ukraine, but Donovan called those \u201cexcuses\u201d corporations used as \u201ccover\u201d to raise prices. Now comes wave three, caused by \u2026 greed.<\/p>\n

\u201cThe third wave of inflation, the one we\u2019re getting now, is this unusual profit-led inflation story,\u201d Donovan told<\/a> Fortune. \u201cThis occurs where firms towards the end of the supply chain, so that\u2019s consumer facing companies or near consumer facing companies, increase margins and pretend it\u2019s all due to costs and other factors. They sneak in a margin increase.\u201d<\/p>\n

<\/b><\/p>\n

\u201cWe\u2019re seeing this expansion of margin under the cover of, \u2018Oh, it\u2019s a general inflation problem, we can\u2019t help it.\u2019 But actually they\u2019re expanding margin and basically persuading consumers to accept that,\u201d he said.<\/p>\n

And Donovan said it\u2019s time for people to get angry and make their dissatisfaction known.<\/p>\n

\u201cI think that social media can help inflame profit-led inflation by creating excuses that companies can use, but it can also work, by threatening brand values, to cause companies to rethink some of their pricing strategies,\u201d he said.<\/p>\n

For the record, you can\u2019t say the cost of doing business rose and then <\/em>make record profits. Americans need to wake up and make their unhappiness known.<\/p>\n

The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/em><\/p>\n

Joseph Curl has covered politics for 35 years, including 12 years as White House correspondent for a national newspaper. He was also the a.m. editor of the Drudge Report for four years. Send tips to josephcurl@dailywire.com and follow him on Twitter @josephcurl.<\/em><\/p>\n

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