According to U.S. Rep. Katie Porter, fully 54% of our current inflation is actually the result of corporate price-gouging of the American consumer. This corporate greed started in 1982 when the Reagan administration made stock buybacks legal, then Republican administrations allowed an unprecedented number of corporate mergers resulting in virtual monopolies. The last piece was President Trump’s corporate tax cuts allowing companies to keep a greater share of profits.
This lack of competition enabled companies to raise prices and blame supply chain issues. Then companies like Chevron, ExxonMobil, Shell, PepsiCo, Coca-Cola, Kimberly-Clark, Kraft-Heinz, Tyson Foods, Nestle, Colgate-Palmolive and McDonald’s used stock buybacks to funnel the profits to shareholders.
CEOs appear uninterested in lowering prices for the consumer, raising wages of their workers or investing in their own corporations’ futures. Their primary concern seems to be to make more money for themselves and their shareholders.
There have been 27 anti-price gouging and anti-profiteering bills introduced in Congress since 2021. Corporations have lobbied hard against these bills, spending $820 million in one year. Corporate money and Republican obstruction have blocked these anti-price gouging bills from moving forward. However, these bills are wildly popular with consumers (80%), who continue to feel the squeeze on their pocketbooks.
Michael Garing
North Huntingdon