Everybody talks about it but ignores the biggest cause: Corporate concentration. You are being lied to. Prices are undeniably rising. In response, the Feds are slowing the economy, even though were are at least 4 million jobs shortof where we were before the Pandemic, and millions of American workers wont get the raises they deserve. Repubs didnt waste time hammering the Biden administration and democratic lawmakers on inflation. But I will NOT fall for their fear mongering. Everyone is ignoring the deeper structural reason for price increases: The concentration of the American economy is in the hands of a very few corporate giants with the power to raise prices. If the market were actually competitive, corporations would keep their prices as low as possible as they compete for customers. Even if some of their costs increased, they would do everything they could to avoid passing those costs on to consumers in the form of higher prices, for fear of losing business to their competitors. But its the opposite of what we are seeing. Corporations are raising prices, even though they are raking in huge profits.
Corporate profit margins hit record highs last year. According to Forbes, S & P 500 hits record high--amid upbeat 3rd quarter earnings. These corporations have so much marketing power they can raise prices without impunity.
A great example is shopping at COSTCO a few months back. Up until that time you could go to their meat section and without difficulty find US Prime Beef. Filet Mignon, NY Cut, Rib Eye. Now you wont find it at Costco. I honestly believe US Prime beef goes to the hospitality industry and 4* restaurants. Im sure prices have gone up at these places so if your a COSTCO or Walmart Customer you are forced to deal with US Choice, which is good but you are paying higher prices. So the Beef industry controls prices.
Corporate profit margins hit record highs last year. According to Forbes, S & P 500 hits record high--amid upbeat 3rd quarter earnings. These corporations have so much marketing power they can raise prices without impunity.
A great example is shopping at COSTCO a few months back. Up until that time you could go to their meat section and without difficulty find US Prime Beef. Filet Mignon, NY Cut, Rib Eye. Now you wont find it at Costco. I honestly believe US Prime beef goes to the hospitality industry and 4* restaurants. Im sure prices have gone up at these places so if your a COSTCO or Walmart Customer you are forced to deal with US Choice, which is good but you are paying higher prices. So the Beef industry controls prices.