Are record corporate profits driving inflation?

[ck4829]

As prices for goods are on the rise, there has been a debate over how much control consumers have at the cash register.

Some economists, like Rakeen Mabud of the Groundwork Collaborative, an economic policy think tank, say there isn't much attention being paid to companies that are charging these prices.

Mabud spoke with ABC News' "START HERE" to discuss the role of corporations during the current economic climate.

Essentially what's going on is that big corporations are using the cover of inflation to jack up their prices beyond what their input costs would justify and rake in those profits, and consumers are paying the price. Some of the most egregious examples are credit card companies. Visa and MasterCard, for example, are a massive duopoly in their space, and so they have a huge amount of market share. And what we saw is that these companies make money by taking a fixed percentage cut of each transaction. So with inflation, as prices are rising, they're inherently going to be pulling in more money, and yet these companies are also increasing that transaction fee.

https://abcnews.go.com/US/record-corporate-profits-driving-inflation/story?id=87121327

[Bayard]

1. You betcha!

[PdamnedQ]

2. Bingo!

[Sailingdiver]

3. Not completely.

Sure, they contribute but are not the sole cause of inflation. I wish it were that easy.

[ck4829]

4. But a cause