No.
Economists say company worth markups usually are not a significant reason behind inflation.
The greed declare was made Sept. 27, 2024, by Democrat Kristin Lyerly. She is difficult Republican Tony Wied for an open U.S. Home seat for the Inexperienced Bay, Wisconsin, space.
Lyerly’s marketing campaign cited a report by the progressive suppose tank Groundwork Collaborative. It accused companies of “gouging shoppers,” claiming earnings drove 53% of inflation in mid-2023.
The libertarian Cato Institute criticized the report’s methodology. Economists disagree with its conclusion.
The Federal Reserve Financial institution of San Francisco stated that because the COVID-19 pandemic, worth markups have risen considerably in areas corresponding to motor autos and petroleum, however total, markups remained flat and haven’t been a predominant inflation driver.
Economists instructed PolitiFact rising prices for items, labor and actual property are the primary inflation drivers. Trillions in COVID stimulus, near-zero rates of interest and the Russia-Ukraine warfare have been additionally elements.
This truth temporary is aware of conversations corresponding to this one.
Sources
WBAY TV-2 | Inexperienced Bay, WI: Dr. Kristin Lyerly and Tony Wied within the eighth Congressional District debate on WBAY TV-2
New York Occasions: I Listened In on Huge Enterprise. It’s Profiting From Inflation, and You’re Paying for It.
Groundwork Collaborative: Inflation Revelation: How Outsized Company Income Drive Rising Prices
Cato Institute: New Nonsense on Revenue-Pushed Inflation
Federal Reserve Financial institution of San Francisco: Are Markups Driving the Ups and Downs of Inflation?
PolitiFact: Sen. Bob Casey stated ‘costs are up’ due to ‘scheming’ companies, however many economists disagree
PolitiFact: Company earnings don’t drive inflation, however inflation boosts firm earnings
CNN: The reality behind Harris’ inflation and company greed claims
American Institute for Financial Analysis: Truth-Checking “Greedflation”
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