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As inflationary pressure drives up costs throughout the economy, a new analysis out Wednesday reveals that corporations are raking in record profits by jacking up prices at the grocery store, gas pump and beyond — hurting consumers while rewarding investors.
The Guardian, which examined Securities and Exchange Commission filings for 100 U.S. companies, found that net profits increased by a median of 49% from the first quarter of 2020 to the first quarter of this year. Over the same time period, workers’ wages grew by just 1.6%.
These corporations have boosted their profit margins over the past two years by charging more for food, fuel, housing and other basics — using inflation as a pretext to raise prices, negating the modest wage gains that workers made during the coronavirus pandemic. All but 10 have engaged in stock buybacks or dividend bumps to enrich shareholders.