Inflation is a measure of the rate at which the prices of goods and services increase over a period of time. Since the pandemic, consumers around the world have been subjected to high inflation rates due to the pandemic-related economic dislocation, government stimulus programs, supply chain disruptions, and price gouging. In 2022, global inflation reached nearly 9%. The normal U.S. inflation rate is usually between 2% to 3%. Currently, inflation is about 2.4% in Europe and 3.4% here. Inflation has resisted the Biden administration’s efforts to curtail it, resulting in high interest rates which have ravaged our housing market.

With most of the pandemic problems now behind us, consumer advocates believe the main reason for our current high rate of inflation is due to price gouging by greedy corporations unnecessarily raising prices while posting record profits. Records show corporate profits rose by 75% between 2020 and 2022 - 5x the rate of inflation. These increases affect many basic consumer necessities sch as housing, gasoline, groceries, insurance, and prescription drugs - and are in addition the massive corporate tax cuts passed under the Trump administration in 2017.

Advocates say middle-class Americans are most affected by price gouging. They claim the underlying economic problem is profit-price inflation caused by corporations raising their prices way above production costs. The reason they are able to do this without consequence is due to the absence of any real market competition, allowing many industries to operate as de facto monopolies. Since the 1980s, two-thirds of all American industries have become more concentrated. Today, only 4 companies control 85% of all meat and poultry processing. The airline industry has gone from 12 carriers in 1980 to just four today, all rapidly raising ticket prices. The 5 companies that are Big Pharma have raised American drug prices to the highest level on the planet – by far.

Advocates believe the inflation we are experiencing now is not due to wage gains from excessive worker power. It is due to profit gains from excessive corporate power. They see limited price controls and windfall profits taxes as the only solutions for consumers to change unethical corporate behavior.


Pending Legislation: S.3803 - Price Gouging Prevention Act of 2024
Sponsor: Sen. Elizabeth Warren (MA)
Status: Senate Committee on Banking, Housing, and Urban Affairs
Chair: Sen. Sherrod Brown (OH)