inflation

How Corporations are Using Inflation to Take Your Money

Inflation is a cover corporations are using to squeeze more money out of you. But as I’ll explain, there are five things we can do to fight back.

Corporations are using inflation as an excuse to raise their prices, hurting workers and consumers while they enjoy record profits. 

Prices are surging – but let’s be clear: corporations are not raising prices simply because of the increasing costs of supplies and labor. They could easily absorb these higher costs, but instead they are passing them on to consumers and even raising prices higher than those cost increases.

Corporations are getting away with this because they face little or no competition. 

3 Lies Republicans Are Using This Election

It’s not just the Big Lie. Republicans are telling three other lies they hope will swing the midterms.

They involve crime, inflation, and taxes.

Here are the GOP’s claims, followed by the facts.

1. They claim crime is rising because Democrats have been “soft” on crime.

Rubbish. Rising crime rates are due to the proliferation of guns, which Republicans refuse to control.

The Fed’s Inflation Mistake Continues

The Federal Reserve has been hellbent on raising interest rates to slow the economy. It’s a huge mistake.

You know who bears most of the pain of these rate hikes?

Most of the pain is borne by people who are already struggling to keep up with rising prices: lower-wage workers and the poor.

While the Fed has signaled that its interest rate increases might not be as drastic moving forward, the important thing to remember is that these hikes already fail to address a major driver of inflation — powerful corporations that are ratcheting up prices to pad their profit margins.

Despite appearances – especially in the United States – the era of high inflation isn’t set for a comeback in the view of Australia’s leading economists, and most see no need for the Reserve Bank to lift interest rates next year.

In the US, figures released last week showed the consumer price index surged 6.2% in the year to October, the most since 1990. So-called “core” inflation (which excludes volatile prices) climbed 4.6%, also the most for 30 years.

US underlying inflation

Here’s an update to my post ‘The Truth About Inflation’. As expected, inflation is still differential. And no, it’s not caused by government spending.

The post Inflation: Everywhere and Always Differential appeared first on Economics from the Top Down.