Posted on 06/20/2023 5:06:54 AM PDT by ChicagoConservative27
Some of the largest general consumer S&P 500 companies are raising prices to boost their own profits even as the Fed raised interest rates to control inflation, according to a new watchdog report.
“Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from inflating consumer prices despite reporting billions in extra net earnings and over a trillion dollars in giveaways to wealthy investors,” said Liz Zelnick, the director of economic security and corporate power at the nonprofit Accountable.US, in a release.
(Excerpt) Read more at thehill.com ...
Only to a leftist would this be surprising.
Once again they confuse profits with profit margins.
If I have a 5% profit margin:
@ $100 I make $5.
@ $200 I make $10.
The profit margin is the same.
Leftists don’t take into account Bideennnnflation.
The price of diesel fuel affects everything.
Pass it on.
Apparently now the left thinks it's evil to provide food.
No, the left pretends it’s evil while enabling monopolies.
Protecting Biden from blame is the name of their game.
Just another organization of DemocRAT operatives seeking to shift blame for inflation from Bidet to business.
The Government is responsible for inflation everything else is smoke and oakum.
Profits are bad.......Profits belong to the labor that created them
Basic Democrat union philosophy
There are rumors of the UAW striking the Big Three to get some of the profits. There are going to be strikes as the Biden administration wanes and the opportunity for favorable treatment fades.
No need to read the article. When dividends are called “giveaways,” you know you’re dealing with an author that has a Marxist political agenda.
If a Republican is president every single I’ll in the economy or the country is directly tied to the president and labeled using his name, i.e., Reaganomics. Trump not doing enough or anything about Covid. Bush’s Katrina, etc. But with any Democrat its either some mysterious market force working, or it’s really a good thing, if you are only smart enough to see it that way. For example, high unemployment in the Obama administration was really a great chance to spend time with the family or discover new hobbies. Runaway inflation under Biden is the result of greedy companies and unaccountable market forces.
I remember under Trump and Bush, every single criticism was directly tied and personalized to the president. Democrats are never treated this way and thus nothing is ever really their fault.
“The price of diesel fuel affects everything.”
They use the term “net earnings” like it was an endgame. Nothing is an endgame until the game is over.
For those that aren’t aware, net earnings are those that are left when all the bills are paid for a dedicated investment. And that endgame has levels of need from everything to the cost of the suppliers to each level of sales from the source through the wholesalers to the consumer. And all of it is based upon that net profit that many mistakenly believe is for that trip to Disneyworld. Big business uses it to expand whether it be HR or more/different product. Big business doesn’t want the cash, they want more big business. They already had the cash percentage when they started or they were already on their way to the scrap heap before they opened their doors. Everything is that competitive. So it might be safe to consider net earnings as a stepping stone to gross ones. And gross ones generally cost more.
wy69
Governments will never admit that they have debauched the currency, so they get their mouthpieces to blame ‘greedy kulaks’ and ‘enemies of the people’.
Fiat currencies continue to collapse in purchasing power. Merchants live in the real world, so they *have* to raise prices to meet their costs.
Fiat is a burning building. Time to leave.
Everyone I talk to says things are slowing down. Orders are going down and less product is being moved, and people are actually starting to worry about their jobs again.
I don’t know what kind of margin’s people are getting, but I doubt anyone besides Jeff Bezos is really raking it in right now
Big Food is in bed with the Democrats, and have been for years.
Also, these businesses need to have the cash on hand to purchase product (especially food industry). Has anyone looked at commodities lately? This Ag year has the highest input costs ever. What does that tell you?
Bingo! Last but not least is the U.S. government paying some farmers to keep land fallow. Add to that the ethanol mandate requiring us to burn some food in our cars.
There is some gouging going on no doubt... but the public keeps buying products because the fed hasnt finished the job. Consumer credit is at all time high, but people keep buying. Personal saving down to record levels...still buying. A day of reckoning is coming... thats when food (and other staples-as well as the frivilous things that still generate demand) will come down. People like to think they see a light at the end of this tunnel- Im not so sure.
Some of the flavors and versions they have dropped seem to be merely based on the idea that they don’t need to right now and are profiting off the limited selection, we will see the other versions back on the shelf when the producers start having to work harder for the profit.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.