Robert Reich explains how inflation is fueled by corporate greed

Robert Reich explains how inflation is fueled by corporate greed
Image via Screengrab.

Former United States Labor Secretary Robert Reich on Monday explained the connection between rising prices and corporate greed in a YouTube video posted to Inequality Media.

"Prices are undeniably rising. In response, the Fed is about to slow the economy — even though we’re still at least 4 million jobs short of where we were before the pandemic, and millions of American workers won’t get the raises they deserve. Republicans haven’t wasted any time hammering Biden and Democratic lawmakers about inflation. Don’t fall for their fear-mongering," Reich begins.

"Everybody’s ignoring the deeper structural reason for price increases: the concentration of the American economy into the hands of a few corporate giants with the power to raise prices," he says.

Reich then goes into detail about how big businesses – many of which have monopolistic control over various industries – are gouging American consumers while simultaneously raking in record profits and shelling out gargantuan bonuses to executives and lobbyists.

"The underlying problem is not inflation. It’s corporate power. Since the 1980s, when the U.S. government all but abandoned antitrust enforcement, two-thirds of all American industries have become more concentrated. Most are now dominated by a handful of corporations that coordinate prices and production. This is true of: banks, broadband, pharmaceutical companies, airlines, meatpackers, and yes, soda," Reich states.

"Corporations in all these industries could easily absorb higher costs — including long-overdue wage increases — without passing them on to consumers in the form of higher prices. But they aren’t," he continues. "Instead, they’re using their massive profits to line the pockets of major investors and executives — while both consumers and workers get shafted."

Watch below:

The Hidden Link Between Corporate Greed and Inflation | Robert Reich


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