Inflation: A Formula for Disaster

Photo by John Crowley. CC BY-SA 2.0.

August 10, 2022

Rising inflation has everyone worried. Rightly so. But there is an echo chamber convincing policy makers, much of the press and the public that corporate greed is solely to blame. We’ve always known corporations care far more about profits than they do about people, but blaming the current situation on corporate greed alone misses the bigger picture.

The Fed forcing millions of low-wage workers out of work is not a solution, but enforcing anti-trust regulation and breaking up monopolies is. CEPR Co-Director Eileen Appelbaum explains how market consolidation is one of the drivers of dysfunction that may express itself in empty shelves and shortages of essential goods or take the form of rapidly rising prices.

The baby formula shortage is a clear example of how lax anti-trust regulation, market monopolization, and extreme profit seeking make a formula for disaster.

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