Democrats continue to claim that rising inflation is driven by corporations’ greed for profits, but economists are debunking their argument, according to The Hill.
“Inflation since 1980 has remained mostly at low levels, and experts say that the notion higher profits would have suddenly contributed to spiking inflation following the pandemic is a tough pill to swallow.”
Even Treasury Secretary Janet Yellen “pushed back on the notion that the country’s crippling inflation is being caused by corporations trying to rake in profits” both during a New York Times event and during a Senate Finance hearing. As the Washington Examiner reported:
“Yellen, who previously served as chairwoman of the Federal Reserve, was asked whether corporate greed is the key cause of inflation … ‘Demand and supply is largely driving inflation,’ Yellen said, adding that while price-to-cost margins have increased, that is not what is pushing prices to their highest levels in 40 years.”
- “There’s growing agreement among economists that companies have become more powerful and more profitable over the past several decades — a fact they say pokes a hole in some lawmakers’ arguments that greed for profits is what’s behind spiking inflation.”
- Gabriel Unger, a Ph.D. student in economics at Harvard University: “For most of the past 40 years, we’ve had an economy with high and rising markups, and very low inflation.”
- “‘Democrats’ $2 trillion in so-called COVID ‘stimulus’ spending fueled inflation long before Russia invaded Ukraine,’ House Ways and Means Committee ranking member Kevin Brady (R-Texas) said in a Thursday statement.”
As working families watch their budgets shrink and prices climb, the Biden Administration continues to pass the buck for their own incompetence.
- In 2021, President Biden claimed that inflation had peaked, dismissing it as “transitory” and a “high class problem,” but it’s clear that inflation continued to rise and hit poor and middle-income Americans the hardest.
- The Biden White House was quick to pin the price hike on Russian dictator Vladimir Putin as consumer prices jumped almost 8 percent in February 2022.
- President Biden’s so-called plan to fight inflation are the same policies that fueled it. The White House is in denial about having sabotaged our recovery and are pushing tax increases that will show up in higher prices.