Separating Facts from FAKES
Separating Facts from FAKES
Gasoline prices have hit a seven-year high in the US, despite the face that US oil companies is a net EXPORTER of gas and oil, and there is no shortage of supply. The companies are simply using the cuts made by OPEC internationally, to raise prices here -- and create record profits.
The big meat-processing companies used their near-monopolistic market power to drive up meat prices (while underpaying farmers) and TRIPLED their own net profit margins since the pandemic started -- by RAISING PRICES more than TWICE AS MUCH as their costs increased!
The biggest single inflationary item is now housing. For home buyers, prices are rising primarily due to demand. Construction costs are up, but not nearly as much as prices -- which are based on whatever the market will bear. Rents are also higher due to the same forces, multiplied by people's inability to purchase homes.
General Mills is raising prices 20% — even though it’s PROFITS WENT UP 3% in 2021! The company is trying to blame inflation, but it’s really just CORPORATE GREED. They're taking advantage of the public's general sense of a crisis to get away with the unnecessary price increases.
Walmart is the largest grocery chain in the country. And the company has been raising wages amid the high turnover during the pandemic. But these cost increases didn't hurt Walmart --PROFITS ARE UP because they raised prices more than their increased costs! Blame it all on inflation.
Energy costs are way up -- not just gasoline, but heating oil, natural gas, electricity and coal. Extreme weather events increased DEMAND, and forced some refineries to shut down. But the outlook is good as inventories build back up. Nevertheless US energy COMPANIES did well, reporting INCREASED EARNINGS of 54.3% in 2021.
McDonald's had a very solid business year in 2021. The fast food chain pulled in over $23 billion and their profits rose 59% from 2020. Overall, the business accumulated a very sizable profit of $7.5 billion.
REAL Inflation is usually classified into three types:
BUT IN SOME CASES, corporations raise prices JUST BECAUSE THEY CAN!
THIS IS WHAT IS HAPPENING RIGHT NOW!
Corporations are using COVID-19, increased prices of foreign oil, and increased wages to "justify" higher prices even though their PROFIT MARGINS ARE BETTER THAN EVER. If costs go up by 2%, the corporation may raise its prices by 5%, to make more profits. Consumers just shrug their shoulders and accept the explanation that is all due to inflation, or shortages, or regulation -- WHEN THAT MAY NOT BE TRUE, IT'S JUST AN EXCUSE.