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Uncle Joe

(58,112 posts)
Sat Nov 13, 2021, 11:56 AM Nov 2021

We need to talk about the real reason behind inflation in America Robert Reich



(snip)

Republicans are criticizing Biden and Democratic lawmakers for inflation and attacking their economic stimulus plans as wrong. “This will be a winter of high gas prices, shortages and inflation because the madmen on the far left control our government,” Marco Rubio, the Republican senator from Florida. posted on Twitter Thursday.

One of the main reasons for price increases is supply bottlenecks, as Jerome Powell, Chairman of the Federal Reserve, has pointed out. You think they are temporary and you are probably right.

But there is a deeper structural reason for inflation, one that appears to be worsening: the economic concentration of the American economy in the hands of a few corporate giants with the power to drive up prices.

(snip)

It could raise prices and make more money because P&G faces almost no competition. Most of the diaper market, for example, is controlled by just two companies, P&G and Kimberly-Clark, which roughly coordinate their prices and production. It was hardly a coincidence that Kimberly-Clark Announced price increases similar to those of P&G at the same time as P&G announced its own price increases.

(snip)

https://digismak.com/we-need-to-talk-about-the-real-reason-behind-inflation-in-america-robert-reich/

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We need to talk about the real reason behind inflation in America Robert Reich (Original Post) Uncle Joe Nov 2021 OP
K&R nt markie Nov 2021 #1
Yup, businesses are in cahoots to prevent competition Freddie Nov 2021 #2

Freddie

(9,232 posts)
2. Yup, businesses are in cahoots to prevent competition
Sat Nov 13, 2021, 02:11 PM
Nov 2021

Years ago there was a lawsuit about baby formula makers doing exactly that. Apparently fully 1/4 of all baby formula sold is paid for with WIC so the government got involved. There were fines but it’s probably still going on.
I read somewhere that the only way gas prices will go down is when areas with many gas stations start having price wars. Hope that happens.

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