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Dear John,
Since March I’ve been screaming about the Federal Reserve’s total misreading of inflation — that it’s being caused by workers getting wage hikes and government spending, when the real domestic cause is powerful corporations raising prices higher than their costs.
Major corporations that dominate key industries are using the cover of inflation as a means to jack up prices, resulting in their fattest profit margins in 70 years.
If it wasn’t already clear that inflation is being driven by corporate greed – just listen to these executives admit it during their earnings calls.
In public, corporate executives blame “government handouts” and wage increases for inflation. Meanwhile, they talk with investors about how inflation has been their “friend” because it gives them cover to raise prices.
It's the definition of corporate greed and deception. I’ve had enough.
Congress and the Biden administration must take direct action against powerful corporations that are driving inflation. We can no longer rely solely on the Federal Reserve to raise interest rates to slow the economy. Not only will this risk another recession — it will put the entire burden of fighting inflation on working people who are not responsible for it — and who are already hit hardest by rising prices.
There are better ways to control inflation that limit corporate profits rather than jobs and wages — such as a windfall profits tax, tougher antitrust enforcement, and even temporary price controls.
We can’t keep letting greedy corporate executives get away with this.
Many thanks to The Groundwork Collaborative for uncovering these corporate earnings calls and helping spread the word about corporate price gouging.
Know the truth!
Thanks for watching,
Robert Reich
Inequality Media
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