Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

ck4829

(35,714 posts)
Mon Oct 24, 2022, 09:40 AM Oct 2022

'Greedflation': who wins, who loses?

European Union citizens are experiencing inflation not seen for decades. In Germany it has reached double digits at 11 per cent, while in Austria the rate is 9.3 per cent. These rates are due to the disruption in supply chains and the shortage of fossil resources—triggered by the coronavirus crisis and the Ukraine war—on which the two countries were extremely dependent until recently. Prices are exploding not only in energy supply but also in all other essentials, including food.

At the same time, companies in certain sectors are making excess profits due to the shortage of strategic resources. Since market mechanisms are no longer working in such a constellation, it is the task of the state to intervene with regulatory policy.

The American energy giant Exxon Mobile announced earnings of $17.9 billion in the second quarter of 2022 compared with $5.5 billion in the first, tripling its profit. BP’s first-quarter profit was three times last year’s $9.1 billion. The German energy group RWE increased its profit by more than a third to €2.8 billion in the first half of 2022. And the Austrian company ÖMV recorded a profit of 124 per cent in the first two quarters.

The United States president, Joe Biden, said: ‘We will make sure that everyone knows Exxon profits.’ Implicit in his reproach was that the corporation’s profit was not related to enhanced performance, achieved by investment and technological progress. On the contrary, companies in strategic oligopoly and monopoly positions appear to be exploiting consumers’ dependency in the crisis and charging unreasonable prices for products for which there are no alternatives.

https://socialeurope.eu/greedflation-who-wins-who-loses

3 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
'Greedflation': who wins, who loses? (Original Post) ck4829 Oct 2022 OP
This is how global capitalism works Farmer-Rick Oct 2022 #1
My sense of dread... 2naSalit Oct 2022 #2
K/R appalachiablue Oct 2022 #3

Farmer-Rick

(11,210 posts)
1. This is how global capitalism works
Mon Oct 24, 2022, 10:02 AM
Oct 2022

A handful of filthy rich people decide what prices will be. If they get together to decide the price like OPEC and diamond sellers, or if they corner the market on certain commodities like specific drugs, or they have a life sustaining resource everyone needs to survive like healthcare, they can raise prices until most people are using most their money to pay for it.

This is how uncontrolled capitalism works, how it always worked.

I'm sure all true capitalists, trickle-down economists, "free" marketeers, neoliberal cheerleaders, austerity lovers, and supply side economists understand and are very happy with how things are going. It's what always happens with uncontrolled capitalism. Welcome to the 1930s again. Hope the banks don't confiscate all your money.

Latest Discussions»Issue Forums»Occupy Underground»'Greedflation': who wins,...