While factors like the Ukraine war and climate change help drive up food prices, let's take a lot at some of the other factors -- like record corporate profits. Via Forbes:
There are policy measures that may ease the pain. The Emergency Price Stabilization Act, introduced by Congressman Jamaal Bowman (D-N.Y.), would tackle supply side price hikes and recommend the use of price controls to limit price increases in key goods and services. Price controls during WW2 kept profits in check while strengthening consumer spending power. Windfall profit taxes and expanded unionization could redistribute the gains more equitably. The USDA has rolled out compelling programs to develop regionally distributed food supply chains. The FTC has stepped up antitrust scrutiny, alongside Congressional hearings investigating grocery consolidation. And worker representation on corporate boards could bring some balance to corporate governance above and beyond timid ESG measures.
Despite monetary policy having no sway over food prices, the Federal Reserve’s interest rate hikes may plunge the economy into a growth recession, punishing working people who carried the nation through the pandemic. What we need instead is to rein in the corporate capitalism strip-mining a food system in crisis.
The Fed, left to its own devices, will continue to lean on increased interest rates that will lead to layoffs. (To a hammer, everything looks like a nail.) But with Democrats firmly in charge, we can go after the monopolies that are making life miserable.
What's that, you say? Record revenue, corporate profits and huge shareholder payouts? Don't take my word for it. Take a look at this.
Does Bloomberg ever sound this damn sceptical when quoting Republicans?
Democrats are blaming major food producers for passing along inflation to consumers while recording profits — a strategy they hope can blunt the political impact of rising prices ahead of the midterm elections.
Their strategy was underlined in an analysis from left-leaning watchdog Accountable.US on Wednesday, which pointed to positive financial results for food companies including Sysco Corp., Kellogg Co., Starbucks Corp., Kraft Heinz Co., and Chipotle Mexican Grill Inc. in recent months. Those results came even as consumers faced food prices that climbed 10.9% compared to a year ago, the most since 1979, according to inflation figures released Wednesday.
It's not just happening here. Food price inflation is hitting hard all over the world.
