Katie Porter pulls out chart at hearing to show corporate greed is the "biggest driver of inflation"
By: Brandon Gage (Salon)
S E E D E D C O N T E N T
During a House of Representatives hearing on Wednesday, United States Congresswoman Katie Porter (D-California) grilled Mike Konczal, the director of Macroeconomic Analysis at the Roosevelt Institute, over the primary cause of inflation in the post-COVID-19 economy.
Equipped with one of her easy-to-read, data-filled posters, Porter got Konczal to admit that surging corporate profits are forcing American consumers to pay significantly more for goods and services.
"According to this chart, what is the biggest driver of inflation during the pandemic? The blue - the dark blue is the recent period," Porter pointed out.
"It would be corporate profits," Konczal confirmed.
"And what is that percentage?" Porter asked.
"It is 54 percent," Konczal replied, "and that number does stay that level of high if you update that number to more recent numbers as well."
Porter asked if that meant that "over half of the increased prices people are paying are coming from increases in corporate profits?"
Konczal said that it did and that "the unit price index is reflected in corporate profits as opposed to other costs."
Porter questioned Konczal, "how does that compare to, historically, other periods of inflation or over other periods of economic time?"
Konczal noted that "it is significantly higher in this recovery - 11.5 percent."
Porter added, "and what is it today?"
Konczal conceded that it is "53 percent."
Porter then had Konczal clarify what her graphic is representing:
So I want to make sure everyone in America understands this chart. What is a 'unit labor cost?'
Konczal:
The cost in wages and associated work.
Porter:
But we can just say wages. What is a 'non-labor input cost?'
Konczal:
A variety of things, including maintenance and investments.
Porter:
Okay, so I have to buy the stuff to make the widget. I have to have a factory. I have to keep the lights on. I have to hire someone to make the widget. That's this stuff. And this is what I add on, on top?
Konczal:
Yes .
Watch below or at this link.
Bigger corporate profits account for *over half* of the higher prices people are paying. pic.twitter.com/RZr5O0X4oJ — Rep. Katie Porter (@RepKatiePorter) October 18, 2022
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Of course. Corporate wages explode while your average worker pretty much stagnates
Without corporate greed inflation would be considerably lower than it is today.
Wait, no, it's President Biden's fault
That's what the voters have been led to believe, and. they will vote the Democrat bass turds out
Great time to buy stocks, their prices are falling as the profits are climbing, don't let this opportunity pass you by.
The bottom bar is labor costs to create the product , the middle bar is non labor costs, and the top bar is the corporate profits.
The companies take advantage of the fact that people want to buy more as the pandemic trails off. And raise prices.
Corporate collusion across each sector means no one under prices to sell more. We consumers need to boycott these sellers of goods and services to drive the prices back down.
They really need to get a better expert. One not from a think tank exposing leftist BS. Democrats are clueless.
I think I'll go with what a Stanford Scholar instead of a idiot Democrat trying to place blame everywhere but where it should be - THE BIDEN ADMINISTRATION.
Another swing and another miss by the Democrats.
Lol. Why is it corporations only try to profit when Democrats are in office?
Because Democrats are great for the 1%.
Not so much for the rest of us.
Not according to Gallup.
The 1% has more republicans.
You'll notice he said "Democrats are great for the 1%", not the other way around.
Perhaps they shouldn't be held accountable as they know not what they say.
Building up their reserves for what they know is inevitable to come. Many are predicting a recession. I, however refuse to participate in a recession.
Watch it. They will force you to work in the Brandon administration./S
The same reason kids are only in cages when Republicans are in office.
I read that crates provide toddlers with a safe space for them to relax.
Those greedy corporations are like the greedy home sellers last year. They could have priced their home at what the previously paid for it plus a politically correct increase based on the number of years they owned it, but no, those greedy families price it at what they thought the market will bear. And when they learned that multiple people able and were willing to pay even more, they sold it at above their original asking price and demanded no home inspection. Greedy American capitalist home owners.
that democrats knew that pouring money into the economy would worsen inflation is obvious, that the third ranking democrat in the house would Admit the obvious is rather shocking.
Did dems pour money into the economies around the globe ?