Sanders to Hold Hearing on 'How Corporate Greed and Profiteering Are Fueling Inflation'
S E E D E D C O N T E N T
Sanders to Hold Hearing on 'How Corporate Greed and Profiteering Are Fueling Inflation'
5-6 minutes
U.S. Senate Budget Committee Chair Bernie Sanders announced Friday that next week he will hold a hearing to expose how corporate profiteering in the midst of multiple global crises is driving inflation.
As prices increase, corporate profits hit a record high of nearly $3 trillion in 2021, up 25% in a single year.
The event—entitled "Corporate Profits Are Soaring as Prices Rise: Are Corporate Greed and Profiteering Fueling Inflation?"—is scheduled for April 5 at 11:00 am ET and will follow his introduction last week of the Ending Corporate Greed Act.
"Let me be clear," Sanders (I-Vt.) said in a statement. "The American people are sick and tired of corporate greed. They are sick and tired of being ripped off by corporations making record-breaking profits. They are sick and tired of being forced to pay outrageously high prices for gas, rent, and food while large corporations make out like bandits.
"We cannot continue to allow large, profitable corporations to use the war in Ukraine, the Covid-19 pandemic, and the specter of inflation to make outrageous profits by price gouging Americans in every sector of our economy," he added. "It's time we discuss how corporate greed and profiteering are fueling inflation."
Sanders' statement highlighted how key sectors are behaving:
Across every major industry, prices continue to rise—this includes a 38% increase in the price of gasoline, a 44% increase in the price of heating oil, a 41% increase in the price of a used car, a 24% in the price of rental cars, and a 17% increase in the price of furniture. Further, Tyson Foods recently increased beef prices by 32%, the price of chicken by 20%, and the price of pork by 13%. As prices increase, corporate profits hit a record high of nearly $3 trillion in 2021, up 25% in a single year.
As Common Dreams reported Thursday, domestic corporate profits adjusted for inventory valuation and capital consumption hit $2.8 trillion last year, up from $2.2 trillion in 2020, according to the Commerce Department's Bureau of Economic Analysis (BEA).
"CEOs can't stop bragging on corporate earnings calls about jacking up prices on consumers to keep their profits soaring," Lindsay Owens, executive director at the Groundwork Collaborative, said in a statement about the analysis. "These megacorporations are cashing in and getting richer—and consumers are paying the price."
Owens is one of three experts set to testify at the Senate Budget Committee's Tuesday hearing. She will be joined by Robert Reich, a public policy professor at the University of California, Berkley who served as U.S. labor secretary during the Clinton administration, and Michael Faulkender, a finance professor at the University of Maryland who served as assistant secretary for economic policy at the Treasury Department under former President Donald Trump.
Both Reich and leaders from the Groundwork Collaborative, a progressive nonprofit, have praised recent proposals by Congress to curb corporate profiteering—which 82% of U.S. voters believe is fueling inflation, according to polling from last month.
Praising the Ending Corporate Greed Act—which Sanders unveiled with Sen. Ed Markey (D-Mass.) and Rep. Jamaal Bowman (D-N.Y.)—Rakeen Mabud, Groundwork Collaborative's chief economist and managing director of policy and research, said that "families, workers, and consumers expect their government to stand up against the kind of corporate abuses we're seeing today and Sen. Sanders' bill does exactly that."
If made into law, as Common Dreams reported , the proposal would impose a 95% tax on a company's profits that top its average profit level for 2015-19, adjusted for inflation. It would only impact companies with $500 million or more in annual revenue and be limited to 75% of income per year.
"A windfall corporate profits tax is badly needed to put the brakes on corporate profiteering that has run rampant over the course of the pandemic," said Mabud. "And now, the war in Ukraine is providing yet another opportunity for multinational energy giants and oil executives to drive up profit margins—while forcing families to pay more at the pump and on their energy bills."
Sanders' office estimates that the legislation, which is inspired by previous wartime measures, "would raise $31.9 billion from three of the top oil companies alone" in a single year, referring to Chevron, ExxonMobil, and ConocoPhillips.
The senator said last week that "the time has come for Congress to work for working families and demand that large, profitable corporations make a little bit less money and pay their fair share of taxes."
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Supply is low, demand is high, and the government has put more money in Americans’ pockets resulting in inflation - who knew?
If inflation is this great national crisis, why do people accept price gouging from corporations? Are we all sheep? This is all a case of these companies saying because demand is higher than normal let's raise prices above and beyond what we normally would so we can go on an investors earnings call and tell them how great we are doing. Then the sheen of "supply and demand" is used as a justification. On second thought, we are all sheep.
I don't think that it is a great national crisis, at least not yet.
Are we all sheep?
You mean like ordering from Amazon on our expensive cell phones as we wring our hands about corporate giants?
Ewe can blame the sheepulling the wool over eyes, but not sure how that in any way justifies. More like just Defies, as the burden on the evaporating middle class and growing poor is quite evident, while these corporations exploit the lobbyist bought and brought forth loopholes in our quilted American Fabric, that needs to be thoroughly washed, for IT IS DIRTY.
""Let me be clear," Sanders (I-Vt.) said in a statement. "The American people are sick and tired of corporate greed. They are sick and tired of being ripped off by corporations making record-breaking profits. They are sick and tired of being forced to pay outrageously high prices for gas, rent, and food while large corporations make out like bandits."
.
And while US Sheeple listen to the distractions slipped in to the Parties blaming each other, the blah blah blah, gives the Parties the cover, so as yes, the average citizen watches the flick of the wrist, while hands take a second, to help themselves to ours, 24 a day.
The potUS, his Administration, and the Democratic Party, do not control the price of oil, are not capable of erasing a pandemic overnight, or controlling Putins' Tyrannical Rex of neighboring Ukraine, so for American and other gouging corporations to exploit our inflations as they play our Nation it is quite the frustration. That Money doled out to the minions, in many opinions, saved these Major Corporations. And unless reigned in, they will FCK the US over yet again, after being saved by that same entity. Our pay to play, and or, have something to say system, is saying a lot, and it isn't good nor will it bode well for US. The GOP has already shot down Bidens tax on the Uber Rich, lets see how they play the Sanders pitch, to stop Forking US to the tune of many Billions robbed, cause these bitchy basturds are just fat Cats, also known as greedy pussies, shaving Brazillians of dollars right off the Face Value(s), that they prefer to spit in, and claim some sort of happy ending, cause they BLOW !
Ewe, a female sheep, good one.
The potUS, his Administration, and the Democratic Party, do not control the price of oil, are not capable of erasing a pandemic overnight, or controlling Putins' Tyrannical Rex of neighboring Ukraine,,
Of course not, but when the economy and world events are good, the sitting President takes credit and when there bad gets blame, it's what we do.
so for American and other gouging corporations to exploit our inflations as they play our Nation it is quite the frustration.
I'm sorry that your not invested in the market.
shaving Brazillians of dollars right off the Face Value(s)
Shouldn't that be waxing Brazillians...
It is not that simple. If you believe corporate profits are free-------then------well, there is nothing to be said to counter.
So...if corporations are charged yet another tax, it will be considered as another cost of doing business, and will simply be passed on to consumers and customers down the supply chain.
So corporations who rip people off should just be allowed to do whatever they want , because they're going to screw everyone anyway? It is the way of the world?
What's your remedy?
No one forces you to buy from them. If you don't like their prices, buy elsewhere.
Any chance you can respond to the topic?
Any chance you can connect the dots between your post and mine?
When JR tries to connect the dots, he paints a Jackson Pollock.
www.businessinsider.com /big-companies-keep-bragging-to-investors-about-price-hikes-2021-11
Big companies keep bragging to investors about price hikes
Dominick Reuter 4-5 minutes 11/2/2021
Consumer products companies — the ones that make most of the stuff we buy on a daily basis — are posting strong profits this earnings season, even though labor and supply-chain difficulties are making things more expensive .
Prices for businesses are up more than 8% over the past year, according to the US Bureau of Labor Statistics, adding pressure to their bottom lines.
But strong customer demand is allowing many companies to focus their attention on higher-end products and offer fewer discounts and deals, since shoppers have shown a willingness to buy what is available.
Still, there's an even simpler reason that businesses have been able to take the hit and still keep shareholders happy: They're charging you more.
As companies reported third quarter earnings in recent weeks, several have appeared to brag about their ability to reach into your wallet without scaring you off.
"What we are very good at is pricing," Colgate-Palmolive CEO Noel Wallace said. "Whether it's foreign exchange inflation or raw and packing material inflation, we have found ways over time to recover that in our margin line."
Unilever , which owns a staggering number of household brands, reported that while the number of sales dipped slightly across several of its major segments, it was still able to grow profits by raising prices by roughly 4%-5%.
"Consumer-facing price is the last lever we normally use to manage inflation," Unilever CFO Graeme Pitkethly said before describing how they did it: "We find that taking several small price increases is more effective than one large price jump."
Proctor and Gamble also successfully rolled out a series of price hikes in the quarter that perhaps only the most eagle-eyed shopper would have noticed.
"We have not seen any material reaction from consumers," P&G CFO Andre Schulten said. "So that makes us feel good about our relative position."
Some of the retailers that sell many of those companies' products also weighed in on their buck-passing ability.
"We've been very comfortable with our ability to pass on the increases that we've seen at this point," Kroger CFO Gary Millerchip said . "And we would expect that to continue to be the case."
By contrast, Keurig Dr. Pepper acknowledged raising prices, but said the company had no real choice.
"We're trying to keep prices down," CEO Robert J. Gamgort said. "We're only passing on the coffee costs because they are excessively high."
"We have leaned on productivity because it's available to us much more than pricing because it's the right thing to do for the ecosystem of Keurig," he added. "I recognize that concept is very different concept than traditional CPG."
A key reason companies are able to succeed with these hikes is that so many of them are doing it. If only Unilever charged more, that could drive shoppers to choose an offering from Colgate-Palmolive or P&G.
When all of them do it, you don't have a choice.
So far, federal economic aid has helped offset the impact of these new costs on American households, but most of those programs ended over the summer.
The next few months are likely to bring even more price increases, the companies said, which means even more nickels and dimes on paper towels and toothpaste.
If prices are only going up due to inflation , why arent corporate profits where they were prior to the rise of inflation ? Why are consumer oriented corporations recording record profits at a time when much of America is suffering from the effect of price hikes?
We need a tax law that would impose a 95% tax on a consumers demands that top their average demand level for 2015-19, adjusted for inflation.
If you say so.
Thanks, JR.
But top management HAS to raise prices and justify them or how else could they justify their multi-million dollar salaries and bonuses? Talk about Russian oligarchs....
Exactly, we need progressives in top management who want to minimize profits.
You must enjoy being ripped off.
I'm enjoying the growth to my Thrift Savings Plan and Vanguard funds.
Perhaps he is a Supply Sider.
Get ripped off by corporations or the government. Sometimes it is both. If Biden and the Democrats get their way it will definitely be both.
if you pay for a product or a service using your own free will, you aren't getting ripped off.
not sure what it says about people who claim they are getting ripped off when all they have to do is shop around or not buy.
Bernie has lots of spare time on his hands. Makes sense considering this is the only drum he plays. And let me guess, his report will demonize corporations and Republicans that support capitalism and the report will come out a week before November elections.
You like being ripped off? Good to know.
That is a ridiculous conclusion. If I don't like the price being charged I don't buy it. For instance I might want a top of the line cell phone but the price is outrageous so I buy a less expensive model. Simple
Your argument has almost nothing to do with the topic or Bernie Sanders points. If you dont have the money you dont have to buy a cell phone at all. We are talking about what people are paying for a myriad of items, not what their purchasing options are.
You were the one that asked me if I liked being ripped off. If enough people don't buy a product because they feel the corp is charging too much for their products due to corp greed eventually the prices will have to come down and the corps will make less profit. That can be done without Bernie trying to blame the administrations disasters on everyone but the administration.
How is the Biden administration responsible for corporations raising prices so they can claim "record profits" ?
I have seen many many many many people explain that to you in detail, especially with regards to the the oil companies. Your response has always been a quote from Bidens "the buck sure as hell doesn't stop here unless it is good news I can take credit for" playbook. I will pass on hearing you spout it again.
I've heard what you have said, the problem is it is not correct.
Only for the fewer and fewer people buying into the Biden spin and bullshit.
are they innocent?...?
Are they all guilty? Who is to say? Bernie?
The irony is that poor uneducated white people vote for gop representatives who are in the pockets of the big multinational corporations and bankers they all hate...
It is not Socialism to want a more equitable system!
It is Democratic when capitalism works for everyone.
Financial-services firms and trade associations, and their employees, spent a record $2.9B on campaign donations and lobbying in the 2019-20 election cycle. That sector spent 2.5 times more money on electing Joe Biden than it did on Donald Trump.
T op executives at Amazon, Apple, Facebook, Google and Microsoft have written more than 1,000 checks to political groups totaling more than $16 million this election cycle, with almost all of that money going to Democrats.
Nultinational corporations cover their bets, but only Democrats deliver for the working class!
Dude, you are on a roll this morning!
Got any more humorous posts to share?
If Democrats have been delivering all along, where are the results?
only Democrats deliver for the working class
Exactly, and if Manchin had allowed Build Back Better to pass, that additional, huge, debt fueled stimulus would have extinguished this inflation in a heartbeat.
Facts like that give lie to the excuses that only the GOP is working for corporations.
What a bigoted statement.
Isn't the gop's base non-college educated lower and lower middle class white people?
Do you describe the dem's base as non-college educated lower and lower class black and brown people?
No, the Democratic base is comprised of a broad spectrum of enlightened progressives who wisely vote in accordance with their own interests, emphasizing equality and justice...
Now, I don't care who you are, that there is funny!!!!!!!!!!!!!!!!!!!!!!!!!!
Then you should be able to articulate why...
When one has to actually explain humor to someone, then that person clearly has no sense of humor and all explanations will be futile.
You should have just conceded you cannot...
You REALLY need to read AND understand what you read.
I CLEARLY stated all explanations would be futile to a person without a sense of humor.
That is an admission that I can't explain humor to you in any way you could possibly understand since you apparently lack a sense of humor.
Of course not, because Democrats love to pretend their base isn't poorly educated blacks and Hispanics.
But they couldn't win a statewide election in most states without the black voters voting en masse.
Some yes, some no. That does not make your comment any less bigoted.
Translation, free stuff.
Better to let the rich rip you off than poor democrats, eh?
Why do you keep making stuff up and putting words in peoples mouths?
Because it's easier than debating what you have actually written.
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Most of the Dem movers and shakers in the House, Senate and White House aren't poor.
While poorly educated people of color vote for Democrats who are in the pockets of corporations and bankers they all hate.
Weren't you JUST claiming that the Democrats work and deliver for the working man?
What happened since 1/2 hour ago when you claimed that?
If Bernie has to investigate and form a committee, seems like Democrats who are in control HAVEN'T delivered squa except high inflation.
You built that, Joe.
If someone feels they getting ripped off, don't they have the common sense to buy elsewhere?
You would think but the strategy of some is that if they whine about corporate greed enough so that corps (and billionaires) have to pay what liberals think is their fair share they will eventually get it for free since someone else is paying for it
Remember this. It is patriotic and loyal for a soldier to sacrifice his leg or life for his country, but that rule does not apply to corporate America. Profit always 'trumps' patriotism. Always.
It is patriotic and loyal for a soldier to sacrifice his leg or life for his country
I'm a retired soldier and only a very few soldiers make decisions knowing that it will cost them a limb or their life.
One can surmise from the context of your comment that since a soldier seldom makes a choice in which he will have to sacrifice something dear, and following thusly that corporate America, which holds profits dear, would be remiss in eschewing any profit. The breakdown in that logic (if that was indeed your intent) is that, were one not to raise prices to the extent they could have been just as profitable, , why not justGiven the situation and the state of the economy, why not just raise the prices enough to cover additional expenses? Well, It's Greed.
You cannot tax yourself into prosperity.
But you can tax yourself into poverty, right?
Sooner or later you run out of other peoples money to spend.
Yesh.
You obviously missed the punch line when you said, "other people's."
The thing is not that some of the very large corporations are making a higher percentage of profit, it is that most all of the large corporations have made greater margins not based on actual costs of production and distribution but based on "everybody else is doing it" mentality. They had plenty of cover because of the pandemic and stimulus checks, but the margins raising gives the lie to that.
Problem is, as consumers, we cannot do anything about inflation because they (large, national and multinational corporations) are all "in on it." It has been suggested that we "buy a cheaper" whatever, but when prices increase across the board, we end up still paying more for a lesser quality of product, or being priced out of the items that we would and could buy.
So, is there anything that we can do about it? Short of becoming investors in the stock market to a greater extent than the people who seem to think that the population at large is just a source of income to be exploited to the fullest extent possible, I do not see much that the mentioned people cannot just pass off as "increased costs". Maybe not with a fully straight face, but they will anyway.
What gets me is we have these corporations that are supposedly made by the average consumer. So the consumer is what gives the corporations their money to begin with.
In turn they have decided to make extreme profits all the while paying the average employee small wages and little benefits.
Then when one complains about the complete inequality of the structure it is immediately met with, how dare you, we would have to raise prices all around on consumers. They would have to pay for it.
Meanwhile, the corp has already been being payed for by the backs of the very same people they are threatening to raise prices on...
Insane.
The comical and hypocritical thing about Bernie Sanders and his complaints about about high tech corporations and their greed is that is that they are some of his biggest campaign donors.