Consumers blame corporate ‘greedflation’ as soaring prices help companies rake in record profits

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Companies say they’ve raised prices in the COVID era to keep up with soaring production costs. But new research shows most consumers believe they are jacking them up more than necessary.

The trend has been dubbed “greedflation.” And an unlikely but growing alliance of shoppers, liberals and market-limiting conservatives say it explains why corporations are making record profits while presenting themselves as beleaguered.

The survey comes after companies in last year’s Fortune 500 reported an all-time high of $1.8 trillion in profits on $16.1 trillion in revenue, despite inflation soaring to a four-decade high of 9.1% in 2022. And the Biden administration’s efforts to reduce U.S. reliance on natural gas by promoting clean energy alternatives like electric stoves to consumers have not made things cheaper, he added.

In a recent opinion piece, Albert Edwards, a global strategist at Société Générale, blamed such practices on an “unprecedented” and “astonishing” rise in corporate greed during the pandemic. As more analysts blame price gouging for inflation, some say the government needs to impose temporary price controls.The problem with the greedflation theory is that greed remains constant regardless of prices rising or falling, said Ryan Young, an analyst at the libertarian Competitive Enterprise Institute. He blames the “runaway spending” of the federal government’s pandemic relief efforts for the price hikes.

 

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