The truth about inflation is covered up by countless myths propagated by corporations and their political lackeys.
Here are the facts:
Fact #1: Inflation is not fueled by wage increases.
Although wages have increased, they have increased more SLOWLY than prices. Hourly wages are up 5% over the past year, but prices are up 8.6%. This means that adjusting for inflation, workers actually got a 3.5% pay cut over the past year.
Fact #2: company profit are one of the main drivers of inflation.
Companies raise prices above what is needed to cover their higher costs. Those margins have skyrocketed. Companies get away with this price hike because they face little or no competition. And they use the specter of inflation as a hedge.
Last year, companies raked in their highest profits in 70 years. A recent study found that more than half of the price increase we’ve seen can be attributed to rising corporate profits.
Fact #3: Federal assistance to people during the pandemic did not overheat the economy.
Most of the families – who haven’t had a real pay rise in years – have used the aid to pay off debts or save for the future. Aid was barely enough to keep working families afloat.
Fact #4: Inflation is not the result of the policies of President Biden or the Democrats.
Republicans want to blame them for the price hike. But Democrats have tried to push through bills to lower prices and tackle rising business prices, but Republicans and a handful of business Democrats are refusing to pass them.
So don’t fall for corporate myths about inflation.
Rising prices are not driven by wage increases. They weren’t motivated by federal aid to people during the pandemic. And the Democrats are not to blame.
Inflation is fueled in large part by record corporate profits. The best way to combat it is to remove corporate incentives to raise prices through a windfall tax. And reduce monopoly power through tougher antitrust enforcement.
Know the truth.