skip to main content
skip to newscasts

Saturday, July 13, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

VA law prevents utility shutoffs in extreme circumstances; MI construction industry responds to a high number of worker suicides; 500,000 still without power or water in the Houston area; KY experts: Children, and babies at higher risk for heat illness.

view newscast page
play newscast audioPlay

The House passes the SAVE Act, but fails to hold Attorney General Merrick Garland in inherent contempt of Congress, and a proposed federal budget could doom much-needed public services.

view newscast page
play newscast audioPlay

Enticing remote workers to move is a new business strategy in rural America, Eastern Kentucky preservationists want to save the 20th century home of a trailblazing coal miner, and a rule change could help small meat and poultry growers and consumers.

Report: 'Greedflation' primary driver of higher consumer prices

play audio
Play

Thursday, February 8, 2024   

As corporate profits remain at all-time highs, a new report shows that more than half of rising consumer prices in 2023 were caused by corporate greed, or "greedflation."

Elizabeth Pancotti - strategic advisor with the DC-based think tank Groundwork Collaborative - said before the pandemic, corporate profits drove just 11% of price growth.

But even after supply chain snarls were resolved, companies chose not to pass savings along to customers.

"Keeping sticker prices much higher than they probably need to be," said Pancotti. "And as a result, they have really padded their bottom lines on the backs of American consumers, to the tune of about 53% of inflation being driven by corporate profits for the most recent quarters."

The report echoes analysis by the Federal Reserve Bank of Kansas City which identified price gouging as the driving factor for inflation during the height of the pandemic.

Some economists have argued these price hikes were due to companies bracing for future production costs, while others note corporate CEOs have a legal obligation to maximize profits for shareholders.

Pancotti said while production costs did rise by 1% in 2023, consumer prices still rose by 3.4%.

She added that for the past three years, CEOs have bragged on shareholder earnings calls about high profits linked to raising prices.

"Even though their wage costs or their input prices have gone up, they are able to completely offset those by charging consumers more," said Pancotti. "So you don't have to listen to us, they've said it themselves."

An economist at a leading global investment bank has warned that greedflation could lead to widespread social unrest.

Pancotti noted that the Trump administration's 2017 tax cuts gave corporations a tax break for profiteering, and those incentives are set to expire in 2025.

Economists at the University of Massachusetts Amherst have also called for temporary price controls to prevent spiraling inflation in future crises.




get more stories like this via email

more stories
North Carolina has received more than 105,000 contacts to its 988 system via call, chat and text in the past 12 months. (Adobe Stock)

Health and Wellness

play sound

North Carolina must increase its crisis response capacity for long-term success, according to a new report by the mental-health policy group …


Health and Wellness

play sound

In response to an alarmingly high number of suicides among construction workers, Michigan's construction leaders have taken measures to tackle mental …

Environment

play sound

The Ohio Environmental Protection Agency is awarding $271,000 in grants for environmental education projects across the state. The programs will …


Organizers say the Swingman Classic is the closest a modern-day fan can get to the historic Negro Leagues. (Danny Hooks/Adobe Stock)

play sound

Major League Baseball's All-Star week kicks off tonight at Globe Life Field in Arlington with the Swingman Classic featuring 50 student athletes from …

Health and Wellness

play sound

New York doctors are advising people how to stay healthy in the summer heat. Temperatures across the state will reach the high 80s and mid-90s in …

Along with extreme temperatures and public health-related states of emergency, a new Virginia law prevents utility shutoffs on Fridays, weekends and the day before or during state holidays. (Adobe Stock)

Social Issues

play sound

A new Virginia law protects residents from utility shutoffs in extreme weather. The law prevents utility company shutoffs when temperatures are at …

Social Issues

play sound

Minnesotans this month have a chance to share their thoughts on how the state should distribute home energy rebates. With federal incentives coming …

Social Issues

play sound

New Mexico teachers educating young people about climate change don't want them to feel hopeless - and they've developed an educational curriculum to …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright 2021