Democrats are trying to stop corporate greed, which they blame for price gouging. This is part of their campaign to ease voters’ concerns regarding the record inflation rates.
Economists widely believe that the driving force between the rising costs of goods and services has to do with supply and demand. However, Democrats were quick to point out that large corporations are profiting from the high inflation.
U.S. nonfinancial corporate profits increased by $2 trillion in the second quarter of 2022. Corporate profit margins also reached a seven-decade high according to the Bureau of Economic Analysis.
Sen. Mark Kelly (D-Ariz.), spoke against price gouging saying that American families are the ones suffering while big corporations are profiting. His race is considered key for the Democrats potentially holding on to the Senate.
Before his upset win in a New York special House election, Democrat Pat Ryan also had campaign ads running regarding the top utility company ripping off consumers. In his message, he noted that it was time for power to move away from big corporations and toward other families.
Pennsylvania Lt. Gov. John Fetterman (D), also unveiled a plan for prosecuting corporate executives guilty of artificially inflating prices. In an opinion piece for the Wilkes-Barre Times Leader, he wrote that big corporations should not be making big profits by charging high prices for gas and groceries and that this behavior was unpatriotic.
All of these campaigns by the democrats are an attempt to shift the focus on inflation and to deal with the GOP’s criticism that the COVID-19 relief packages which added large sums of money into the economy are responsible for inflation.
While inflation is slowing, consumer prices are still at the same rates. Gas prices have dropped by 20 percent since their peak in mid-June. Still, prices are higher than they were a year ago which is putting a burden on many Americans.