The US said nonsense, doing some searching... why are Corps racking up high profits while the people suffer low wages & the Gov looks the other way? Société Générale: crops such as grains – ADM, Bunge, Cargill and Louis Dreyfus – saw profits shoot up 255%, 12% 16% yes, 255% no.
An economist from Société Générale fears the ‘end of capitalism’ amid ‘Greedflation’. Albert Edwards, an economist at Société Générale, one of the world’s oldest and largest investment banks warns ‘Greedflation’ has gone too far, and says ‘We may be looking at the end of capitalism’.
He says that corporations have used the pandemic and Ukraine war as an excuse to increase profit margins to new heights, which has led to soaring costs, resulting in rising inflation.
He points to data from the Federal Reserve Bank of Kansas City that found that "markup growth"—the increase in the ratio between the price a firm charges and its cost of production—was a far more important factor driving inflation in 2021 than it has been throughout economic history.
Edwards is not the only one who is concerned about corporate greed. A recent poll found that 64% of Americans believe that corporations are making too much money. And a recent study by the Institute for Policy Studies found that the top 500 U.S. corporations have increased their profits by $2.4 trillion since the start of the pandemic, while their workers' wages have remained stagnant.
Edwards warns that the "super-normal profit margins" of corporations could eventually "inflame social unrest" if consumers continue to struggle with inflation and eventually lead to the end of capitalism if left uncontrolled.
He suggests a controversial solution to fix the rise of Greedflation by bringing back the idea of price controls, a tool used in the 1970s, which is less favored among his colleagues.
He calls on policymakers to take action, saying that "the end of Greedflation must surely come. Otherwise, we may be looking at the end of capitalism.