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Was half of recent inflation caused by corporate greed?

By Tom Kertscher
NO

Economists say corporate price markups are not a major cause of inflation.

The greed claim was made Sept. 27, 2024, by Democrat Kristin Lyerly. She is challenging Republican Tony Wied for an open Green Bay, Wisconsin-area U.S. House seat.

Lyerly’s campaign cited a report by the progressive think tank Groundwork Collaborative. It accused corporations of “gouging consumers,” claiming profits drove 53% of inflation in mid-2023.

The libertarian Cato Institute criticized the report's methodology. Economists disagree with its conclusion.

The Federal Reserve Bank of San Francisco said that since the COVID-19 pandemic, price markups have risen substantially in areas such as motor vehicles and petroleum, but overall, markups remained flat and have not been a main inflation driver.

Economists told PolitiFact rising costs for goods, labor and real estate are the main inflation drivers. Trillions in COVID stimulus, near-zero interest rates and the Russia-Ukraine war were also factors.

This fact brief is responsive to conversations such as this one.
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Wisconsin Watch, the news arm of the nonpartisan, nonprofit Wisconsin Center for Investigative Journalism, increases the quality and quantity of investigative reporting in Wisconsin, while training current and future investigative journalists. Its work fosters an informed citizenry and strengthens democracy.
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