Bigger corporate profits account for *over half* of the higher prices people are paying.

[Mary Wilson]

Rep. Katie Porter
@RepKatiePorter

Minivan-driving single mom, law professor, consumer advocate. Usually carrying a whiteboard, always bringing the receipts
Irvine, CA and Washington, DC
porter.house.gov
Joined January 2019
98 Following 1.2M Followers
_____________________________

Bigger corporate profits account for *over half* of the higher prices people are paying.

5.6M views
0:48 / 1:20
3:56 PM · Oct 18, 2022·Twitter Web App

VIDEO:
https://twitter.com/RepKatiePorter/status/1582475617723113472?cxt=HHwWgIDTwZTMivYrAAAA
_____________________________



Rep. Katie Porter
@RepKatiePorter
Markup (noun): What a corporation charges consumers on top of production costs, to generate profit. Example: The biggest recorded year for markups was 2021.
0:29
745.5K views
1:35 PM · Oct 19, 2022·Twitter Web App

VIDEO:
https://twitter.com/RepKatiePorter/status/1582802684393816065?cxt=HHwWgoCgjfmpn_crAAA

 

[sharon sanders]

Mike Konczal is the interviewee in the above video snips. He is a director at the Roosevelt Institute, where he focuses on economics, inequality, and the role of public power in a democracy.

https://rooseveltinstitute.org/authors/mike-konczal/

 

[Emily]

https://www.bbc.com/news/world-us-canada-63323636
Inflation: Why Canada grocers are accused of 'greedflation'

• Published

18 hours ago

By Nadine Yousif
BBC News, Toronto

Like many around the world, Canadians are struggling with the cost of food. But amid accusations of "greedflation" - taking advantage of inflation to raise prices - the country's largest grocery chains say they aren't to blame.

With food prices mounting, Canadian grocery store giant Loblaw made a promise: the cost of products under its lower-cost in-house brand, No Name, will remain frozen for three months.

The offer, announced in a promotional email by Loblaw CEO Galen Weston on 17 October, wasn't well-received. Some labelled it a PR stunt, while others declared it too little, too late.

The sour reaction isn't without reason. Inflation has slowed in recent months, but the cost of food is still soaring with increases reaching a 41-year high.

At the same time, large corporations - including grocers - are reporting record earnings. Loblaw's first-quarter profit this year was up nearly 40% from that of last year, and its net earnings after adjustments were up 17%.

In Canada, where distrust in grocery magnates runs deep from a recent bread price-fixing scandal, this dilemma has turned political...

 

[Emily]

Profits are higher because war and oil/gas sanctions drove up oil/gas prices in the global market.

https://oilprice.com/Energy/Energy-General/What-Biden-Is-Getting-Wrong-About-Big-Oils-Profits.html
What Biden Is Getting Wrong About Big Oil’s Profits

By Robert Rapier - Jun 18, 2022, 10:00 AM CDT

• President Joe Biden has targeted Big Oil companies, accusing them of price gouging.
• The high profits and soaring inflation are both a result of high oil prices, and oil companies have little influence over that.
• The oil companies are always a convenient scapegoat, particularly for Democrats.

Last Friday President Biden singled out ExxonMobil for reaping big profits as a result of high oil and gas prices. The President complained “Why don’t you tell them what Exxon’s profits were this year? This quarter? Exxon made more money than God this year. Exxon, start investing. Start paying your taxes.”

Other prominent Democrats have also smeared oil companies in an attempt to deflect anger over high gas prices. Earlier this year Bernie Sanders blamed inflation on high oil company profits, which reflected a complete failure to understand cause and effect.

Oil companies aren’t reaping huge profits because they are gouging consumers, and their high profits aren’t driving inflation. The high profits and soaring inflation are both a result of high oil prices, and oil companies have little influence over that.

The oil companies are always a convenient scapegoat, particularly for Democrats. But let’s look at ExxonMobil’s profits in context. Further, let’s compare the company’s net profits to those of Apple over the past 10 quarters.

In the most recent quarter, ExxonMobil reported $5.5 billion in net income. If that’s “more than God”, I wonder how President Biden would quantify Apple’s $25.0 billion for the quarter. Five times more than God? Oh, and ExxonMobil also paid $2.8 billion in taxes for the quarter, so it seems that they are paying their taxes.

(The point here by comparing to Apple is simply to show that the outrage isn’t actually over some insane profit level. It’s about the perception that ExxonMobil is taking unfair advantage)....