On Wednesday, economic justice advocates responded to new U.S. government figures that showed nonfinancial corporate earnings soared to record levels in the third quarter of 2022, prompting lawmakers, most of them corporate has received large donations to his campaign) to take action against what progressive experts say is capitalist greed. It is the main factor of inflation.
“Instead of raising interest rates and pushing the economy into recession, Congress and Biden should aim to drive up corporate prices.”
The U.S. Department of Commerce’s Bureau of Economic Analysis found that third-quarter nonfinancial corporate profits were $2.08 trillion, down from just under $1.9 trillion in the same period last year and $1.6 trillion in the third quarter of 2020, up from $1.6 trillion in the third quarter of 2019. reported $1.37 trillion from July to September 2019.
Wednesday’s figures followed similarly record second-quarter earnings of $2.7 trillion and a 15.5% increase in second-quarter after-tax earnings as a percentage of total non-financial corporate value added. increase. This is the largest margin since 1950.
“Today’s record corporate profits mirror what we’ve heard on earnings calls. Companies are happy to report that their strategy of burdening families with unnecessary price increases is working. The Groundwork Collaborative said in a statement. “Strong companies in concentrated industries will keep prices high until legislators regulate them.”
A number of analyzes, including a report released earlier this month by the U.S. House Subcommittee on Economic and Consumer Policy, show businesses are using rapid inflation as a pretext for higher consumer prices.
Meanwhile, US Federal Reserve Chairman Jerome Powell said Wednesday that the Fed will continue to raise interest rates.
“Despite some promising progress, there is a long way to go to restore price stability,” Powell said at an event at the Brookings Institution in Washington, D.C. I will keep it,” he said.
Progressive economists and politicians have stressed that corporate greed is the real culprit in high prices, with former Secretary of Labor Robert Reich saying Tuesday that “instead of raising interest rates and slowing the economy toward recession. to Congress and [President Joe] Biden should aim to drive up corporate prices.”
Senator Elizabeth Warren (D-Massachusetts) said earlier this month, “The Fed has a role to play in controlling inflation, of course, but there’s a big difference between landing a plane and crashing it.” I was.
Watch Group Accountable.US claimed Wednesday, “Corporate greed is driving inflation. Businesses are posting record profits and boasting insanely high prices as rising costs hit American households hard.”
The next Fed rate hike, which Chairman Powell said could come as early as December, will be the seventh this year. Earlier this month, the central bank made his 0.75% rate hike for the fourth time in a row.
A new Navigator Survey poll finds a majority of respondents say the government should focus more on “cracking down on corporate greed and price hikes” than on “stopping wasteful government spending and subsidies.” thinking.
“Our economic crisis isn’t inflation, it’s corporate greed,” said Senator Bernie Sanders (I-Vt.) earlier this year, imposing a windfall corporate profits tax of up to 95% on more than 95% of businesses. introduced the law. Annual revenue for him is $500 million, which was discussed earlier this month.
“Giving tax cuts to billionaires or cutting benefits to the elderly, the sick, children and the poor won’t keep inflation in check,” Sanders said. to fight inflation by passing a profit tax on the United States, by lowering exorbitant medical costs with the help of insurance companies, pharmaceutical companies, the fossil fuel industry, food giants, prescription drugs and gasoline. , groceries.”
