Fidelity sends a periodic newsletter to its investors. Its June 17, 2024, issue dealt with the gap between the reality and the perception of the U.S. economy. The data shows the economy is healthy and growing, but Americans are very pessimistic. Our gross domestic product has grown over the past two quarters. Stocks are doing well. Inflation is dropping, and wages have generally been rising faster than inflation.
The newsletter mentioned the phenomenon known as “negativity bias” in which media viewers appear more engaged with negative news. Because of this factor, some sources play up the negative to increase viewership. If your news source is reporting a poor economy, Fidelity recommends changing your source. Misinformation might cause you to make bad financial decisions, which will negatively affect your financial outcome.
That being said, there are sectors of the economy, like food and fuel, where monopolies are overcharging the consumer. Oil companies like ExxonMobile are making record profits by overcharging us consumers. Food manufacturing companies like Nestle, ConAgra and Kraft Heinz have increased their profits by increasing their prices. Food companies have increased their prices three to four times the inflation rate. Overall corporate profits rose five times faster than inflation from 2020 to 2022.
Contact your senators and ask them to support bill S.3803, the Price Gouging Prevention Act of 2024.
Julia Bojalad
North Huntingdon