Grocery bills may be ridiculously high these days, but supply chain problems, energy costs, and inflation aren’t the only factors to blame. New research suggests that companies are raising prices simply because they can.
In 2021, US companies logged their most profitable year since the 1950s, as many took advantage of economies of scale and other more efficient production processes. Yet, firms increasingly held on to the savings they gained from these reduced costs, rather than passing them on to customers in the form of lower prices.
One widely accepted narrative holds that companies and consumers are sharing in inflationary pain, but a Guardian analysis of top corporations’ financials and earnings calls reveals most are enjoying profit increases even as they pass on costs to customers, many of whom are struggling to afford gas, food, clothing, housing and other basics.
The analysis of Securities and Exchange Commission filings for 100 US corporations found net profits up by a median of 49%, and in one case by as much as 111,000%. Those increases came as companies saddled customers with higher prices and all but ten executed massive stock buyback programs or bumped dividends to enrich investors.
Dunno about you folks but my grocery bill has increased about 30%. I still buy the same brands as I can afford the increased costs. Likely millions of Americans cannot afford the increased cost of food.
“Once people start stretching out grocery payments it shows the height of personal desperation,” he continued.
Lux said that people could “overextend themselves,” and noted that “for someone who has the ability to pay, this is an interest-free loan.”
That is me. I put groceries on the credit card and gain some cash back income & pay the credit card off every month.