Are We Being Scammed about Inflation?

by | Nov 12, 2021 | Money and Politics, Opinions, Wealth Gap

Photo by Krzysztof Hepner

Are We Being Scammed about Inflation?

by | Nov 12, 2021 | Money and Politics, Opinions, Wealth Gap

Photo by Krzysztof Hepner
Corporate boards have one job and one job only: make money for their shareholders. Thus raising the prices we pay for their goods and services is where "inflation" actually starts even though it is a lazy way of increasing returns.

We are being constantly bombarded with new reports now about inflation being at a record high. Buttressing these reports are repeated snippets about “supply chain” problems, ships stacked up at ports, etc. From this we are supposed to conclude that we have a supply and demand issue and that “empty shelves” are driving up prices. Been in a store lately? What empty shelves?

The more nuanced explanation of “supply and demand” from economics professors runs something like this, “The direct relationship of supply and demand as the only inputs for equilibrium price creation only really work in a perfect economic model. We do not live in a perfect economic model.”

Meanwhile our hands are now supposed to be in the wringing posture and “Woe is us, what do we do now?” the question of the day.

Sorry, I am not buying it. As a rule of thumb I almost automatically disbelieve coordinated news reports. Too often they are manufactured by PR operators. Many years ago I had a conversation with a person well connected inside FOX and I voiced the opinion that about 90 percent of “news” reports were generated by publicists. His response was that my percentage was low.

My opinion now is that we are being had on this inflation data. Let’s look at what makes up this information. In a word, prices. If prices for goods and services are rising, in a very simple view, that is inflation. Goods and services cost more.

Which goods and services? Oil, gas, food, energy, drugs, medical care, hospital visits. All these are areas where prices have been rising.

Let’s take the pharma sector. Do we have “supply chain” issues at work here? Not in the least. What we do have is rampant greed and price gouging that would make a mafioso on Mulberry street green with envy.

Gas prices are steadily rising. Do we have a supply problem? No. We have a sector absolutely geared to price manipulation.

What are we really seeing? It is a PR campaign. Nothing more and nothing less. The former guy screamed (and is still screaming) “totally rigged election.” But what we are seeing is a totally rigged story of “inflation” when what is really happening is companies are raising prices. That is all.

Always remember that corporate boards have one job and one job only: make money for their shareholders. And that money has to come from somewhere. The largest trough in the financial barnyard is consumer spending. There are things that consumers will always spend money on. Food, gas, drugs.

If you have every wondered why Right Wing mouthpieces are constantly hammering about government interference and why the former guy’s administration put so much effort into destroying agencies with business oversight functions, your answer is here. This is the underlying reason that regulation is blamed for all the ills of society and government is painted as “incompetent” or “obstructive” in wild general terms. That’s a black propaganda campaign too. We are supposed to feel comfortable about those whose job is to rein in corporate greed being axed from those jobs.

Corporations that purvey the necessities of society have been allowed to run roughshod over our wallets. And they have bought the Republican party and some obvious Democrats. They have also suckered other past office holders into trying to appear “business friendly.”

But in reality, their mission has always been “inflation.” But how inflation is described is a distraction from the fact that their bottom line is fed by our purchases.

We need a new way of thinking about regulation of huge companies that are actually the utilities of modern life. Requiring some to become Public Benefit Corporations would be a start. This should be instantly applied to Big Pharma (which would make them scream “Communist” of course).

Enforcement of existing laws on the books like the Sherman Antitrust Act would also be a good start.


Submit a Comment

Your email address will not be published.

Related Articles

May 17 2022

Documents Reveal How Drug Companies Targeted Doctors to Increase Opioid Prescriptions

A document trove shows firsthand how drug companies targeted doctors and used information purchased from data brokers to rank them and gain insight on how many of their...
May 16 2022

The Testing Lab That Missed 96% of Covid Cases

State and local officials across Nevada signed agreements with Northshore Clinical Labs, a COVID testing laboratory run by men with local political connections. There...
May 15 2022

Wealth Won’t Protect the Rich from Climate Change

Although wildfires in California have historically peaked in the late summer and fall, Orange County Fire Authority Assistant Chief of Field Operations TJ McGovern told...
May 14 2022

The Facts Surrounding the U.S. Baby Formula Shortage

As Republican fear mongers like Elise Stefanik whip out conspiracy accusations and blame about the baby formula shortage, the real facts from a pediatrician are more...
May 13 2022

Rick Scott — Florida Man Gaslights Himself

Rick Scott has published an 11-point proposal to raise taxes on the poorest of Americans and set the stage to destroy Medicare and Social Security. But he now claims it...
May 12 2022

Tucker Carlson’s Fake Masculinity Crisis Is a Fascist History Lesson

Tucker Carlson is pulling from an old playbook as he stokes anxiety about a masculinity crisis that doesn’t actually exist.
May 12 2022

Watergate — A New History of the Abuse of White House Power

As the 50th anniversary of the Watergate break-in approaches, a recent book charts the transformation of the Nixon administration’s bungled burglary into a wake-up call...
May 11 2022

Baby Formula Has Become the Latest Supply Chain-Monopoly Battleground

Six states are seeing baby formula shortages of more than 50% and stores are limiting purchases to three or four per customer, with prices surging to $33 per can.
May 07 2022

Turning Back the Clock: Justice Alito’s Leaked Draft Overturning Roe v. Wade Quotes a Witch Trial Judge

Justice Alito’s leaked opinion cites Sir Matthew Hale, a 17th-century jurist who conceived the notion that husbands can’t be prosecuted for raping their wives, who...
May 07 2022

Healthcare Profiteering: Medical Bills Force a Family to Get Care in Mexico

The Fierro family was trapped in a situation of being “functionally uninsured.” They have insurance, but their healthcare plan is expensive and they don’t have the...
Subscribe for Updates!

Subscribe for Updates!

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Pin It on Pinterest

Share This