Prices are undeniably rising, and the American people are feeling the crunch. The questions are, why, and what should be done about it?
Should we raise interest rates to slow the economy? Elect more Republicans to cut taxes on corporations and the super-rich?
No. Absolutely not.
We must address the deeper, structural cause of inflation: the hyper-concentration of the economy in the hands of a few giant corporations that have the power to raise prices with impunity.
You see, in a competitive market, a company that raises prices would lose customers to a competitor. But that’s not what we have today. Profit margins at large corporations are at a seventy-year high, and yet corporations are still jacking up their prices.
Take the energy sector. Only a few entities control the vast majority of the world’s oil and gas. Oil giants like Exxon and Chevron have doubled their profits but continue to raise prices.
Here’s another example. Last year, Procter & Gamble raised prices on everything from diapers to tissue paper, even while recording record profits. But if you want to buy your diapers somewhere else, good luck. There’s only one other serious competitor, Kimberly-Clark, and they raised prices, too.
One key solution is to revive antitrust enforcement, which has been dormant since the Reagan years. But if Republicans can convince voters that inflation is all Joe Biden’s fault, that will never, ever happen.
We’re making tremendous progress in educating the public about the untold truth about inflation, and more and more people are spreading the word. But we have more work to do to prevent Republicans from lying their way to victory in the midterm elections and giving corporations even more power.
Will you make a donation to Inequality Media Civic Action and help make sure the American people know the truth about inflation and corporate greed?
Thank you for helping us set the record straight,
Robert Reich
Inequality Media Civic Action
