- The idea that corporate thirst for profits drives up inflation, aka “greedflation” — once dismissed as a fringe theory — is now being taken more seriously by economists, policymakers and the business press.
- Though inflation is starting to come down, it still remains well above the Fed’s target level of 2%, and understanding what’s causing inflation is key to combatting it — now and the next time.
- The idea that profits drove our current bout of inflation surfaced in the last few years among progressive economists and lawmakers but was waved away by more mainstream types as a “conspiracy theory.” That changed earlier this year.
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Axios Finally Figures Out Corporations ARE Gouging Consumers For Profits
TOPSHOT - Resident Osvaldo Ramirez displays a burned $USD 100 bill from his burned vehicle during the Glass fire in St. Helena, California on September 27, 2020. - Ramirez stated USD $8,000 in cash along with his family's papers that were located in a safe inside the vehicle, were burned. A wildfire with a "dangerous rate of spread" broke out in Napa County between Calistoga and St. Helena overnight on September 27, 2020 just as the Bay Area braces for extreme wildfire conditions. (Photo by JOSH EDELSON / AFP) (Photo by JOSH EDELSON/AFP via Getty Images)
