A recent Navigator Research poll reveals a significant shift in public opinion regarding the causes of inflation, with 59% of Americans now identifying corporate greed as a “major cause” – a notable increase from 44% in January 2022. This survey, conducted between January 25-29, involved 1,000 registered voters and highlights growing concerns over economic stability and fairness.
Maryann Cousens, an associate of polling and analytics at the left-leaning Navigator Research, commented on the findings, stating, “After more than two years of corporations posting record profits while Americans struggle to balance their checkbooks, it’s no surprise that people increasingly see corporate greed as a problem.” This sentiment reflects a broader frustration among the public as inflation rates have fluctuated significantly.
Inflation, as per the Labor Department’s consumer price index (CPI), spiked to 7.5% year over year in January 2022, reaching a peak of 9.1% six months later. Despite a subsequent decline to 3.1% in January, inflation rates continue to exceed the Federal Reserve’s target of 2%.
The Federal Reserve responded by increasing interest rates from near zero in March 2022 to between 5.25% and 5.5% by July 2023, aiming to reduce demand and inflationary pressures. These measures, however, have had a noticeable impact on American savings and have led to a gradual increase in delinquencies on credit cards, mortgages, and car loans.
Amid these economic challenges, corporate profits have surged, even as inflation has negatively impacted consumers. Data from the St. Louis Federal Reserve illustrates that corporate profits reached their zenith in the third quarter of 2022, during the height of inflation, and have remained high compared to pre-pandemic levels.
The term “greedflation” has entered the public discourse to describe this scenario, where price increases are driven not by market dynamics or economic factors, but by a deliberate decision by corporations to boost already substantial profits. It was officially recognized by Dictionary.com, defining it as “a rise in prices, rents, or the like, that is not due to market pressure or any other factor organic to the economy, but is caused by corporate executives or boards of directors, property owners, etc., solely to increase profits that are already healthy or excessive.”
Interestingly, the poll indicates that the perception of corporate greed as a driver of inflation is nearly as prevalent as the belief that government spending is to blame, a view more commonly associated with Republicans. However, the concern over corporate practices influencing inflation cuts across party lines, suggesting a united front among Americans against what many see as unfair economic practices.
