Fighting the Inflation Profiteers
The American Prospect
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Fighting the Inflation Profiteers
Companies are raising prices well above increases in their costs. The only antidote is to finally take action against corporate power.
by David Dayen
November 24, 2021
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“Executives are seizing a once in a generation opportunity to raise prices,” reads a Wall Street Journal story explaining that around two-thirds of the largest publicly traded companies are showing profit margins higher today than they did in 2019, before the pandemic. Over 100 companies show profit margins of 50 percent or more above those 2019 levels.
In other words, inflation is being enhanced by exploitation. Profiteers are using the frenzy around higher prices as an excuse to reel in much more than increased costs. President Biden has only tiptoed around calling this out and taking action. But telling a story about corporate price-gouging and sustaining a push against it is a key component to resolving the crisis—and, perhaps, reversing Biden’s slump.
Corporate executives are not hiding their handiwork; instead, they’re boasting about it in financial disclosures and earnings calls. “We have not seen any material reaction from consumers,” said the chief financial officer of Procter & Gamble, the world’s largest consumer goods company, which has hiked prices three times in the past year. “What we are very good at is pricing,” said Colgate-Palmolive’s CEO. “We find that taking several small price increases is more effective than one large price jump,” added the CFO of Unilever. Dollar Tree, a discount store which has the word “dollar” in its name, has decided to permanently set its price point at $1.25, stating specifically that the move is “not a reaction to short-term or transitory market conditions.”
There are a ton of sneaky marketing techniques to raise prices on consumers invisibly, like putting goods in “jumbo” packages that actually increase unit costs, or slowly taking away promotions and coupons. The end result is the U.S. consumer getting nickel-and-dimed, paying more for less. Talk of inflation creates those consumers’ expectations of more inflation, which retailers take advantage of to smuggle in their own inflated prices, solely for profit.
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https://prospect.org/economy/fighting-the-inflation-profiteers-biden-kennedy/
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A P & G product, I found it getting too expensive for my tastes and I started using store brands.
They did just as good a job as H&S and for almost half the price.
I have less hair than in my younger days so a little goes a long way.
Companies like P & G who are exploiting and price gouging can go take a flying leap as far as I'm concerned. I buy more off-brands and local than I used to and they suit me just fine. And the savings is nice, also!
