Column: These companies cynically used global crises to juice profits — and brought us inflation

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Column: These companies cynically used global crises to juice profits — and inflation

Throughout all the debate in the last year over what has caused higher prices and how to remedy them, one term hasn’t received the attention it deserves, given how well it explains the trend:The term defines as what happens when businesses raise prices higher and faster than is needed to cover increases in their costs.that soaring corporate profits have contributed more to inflation than the Federal Reserve Board’s preferred targets, wages and consumer demand.

“Publicly reported supply chain bottlenecks and cost shocks,” Weber and Wasner wrote, “serve to create legitimacy for price hikes and create acceptance on the part of consumers to pay higher prices.” But that has only further victimized those harmed most by inflation: workers. “Ultimately,” write Weber and Wasner, “hiking interest rates is meant to increase unemployment, which hurts workers who have already been in a defensive position in this inflation.”

 

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