Inflation hurts consumers and small businesses
To the Editor:
Is inflation eating into your budget? Is your small business struggling to stay open? High prices at the grocery checkout or the gas pump are likely the result of huge corporations passing along costs to you because they can.
Sure, there are other factors affecting the economy such as supply chain issues and restrictions due to the war in Ukraine. But more and more data show that big corporations are passing along any new costs to consumers and then some.
Consider the price of meat. Did you know that the majority of meat processing (beef, chicken, and pork) is controlled by four giant corporations (Cargill, Tyson, JBS, National Beef Packing Co.)? When these corporations control that much of the market, they also control prices. Instead of absorbing new costs, they hike up prices and in return make more and more money for their shareholders. These four corporations reported a 120% collective jump in their gross profits since the pandemic.
What about toilet paper? Three corporations (Proctor & Gamble, Kimberly Clark and Georgia-Pacific) produce 80% of U.S. toilet paper. These corporations reap record profits, all the while passing along costs to consumers because they can.
If you have an Amazon Prime membership, then prepare to pay 16% more this year. Amazon says it is because of increased costs and inflation. This rationale seems pretty flimsy for a company that reported gross profits of $197.48 BILLION in 2021. That is $197,480,000,000 in profits in just one year. And it’s a 29.3% increase over profits reported for 2020.
When is enough profit enough? Consumers are hurting. The same applies for small businesses, too.
Huge corporations are raising prices because they can, because they have no competition. They are hurting consumers, small businesses and the U.S. economy all the while reaping higher and higher profits than ever before. Think about that the next time you pay for groceries.
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OMG. Really Jean? It sounds like you would prefer communism where the state owns all commerce; a system where greedy business people aren't in control of prices, an altruistic government is. Oops, I forgot. There are no altruistic governments. Most of us have recognized the fallacy of that particular model for society given it has failed time and again. Perhaps you missed those classes? How exactly do you define reaping record profits? P&G, just the one random example I looked up, made 18% profit last year. I suppose that's outlandish by your estimation? Suck it up buttercup. This is what out-of-control inflation looks like compounded by a labor shortage brought about by a government paying people not to work. We've experienced the fastest labor cost growth in two decades. And you think corporations should eat increased costs of goods sold? Your economics class must have been quite special.
Huge corporations today are no longer private entities but are now in cahoots with the Government and they are of course following the Joe Biden / Democrat playbook. Make no mistake, this is all planned to wreck the economy. Whatever you want to call it... 'build back better', 'the great reset'..... This is what you get when you consistently vote for Democrats and RINOs. People get the government they deserve. You really think the government cares about you? Think again.