Found
here. Our comments in bold.
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Dr. Reich tries to deflect from one thing to another. He doesn't really want to talk about inflation, he wants to talk about eeevil corporations. He'd rather not discuss monetary policy or government malfeasance, for his purpose is to blame businesses for being too successful.
Now, we are the first to admit that some businesses do bad things. This is Dr. Reich's complaint. But most of what he chronicles is illegal. Yes, it is illegal to price-fix. It is illegal to collude. This means when a business breaks the law, it needs to be prosecuted. That is government's job. So what we actually have here is a failure of government.
Dr. Reich manages to completely avoid discussing inflation by conflating price-fixing with inflation. The two are not the same. Inflation is the loss of value because there is too much currency in circulation. This occurs when the government prints money and spends it, particularly in the form of stimuli, bailouts, and subsidies.
For example, if there are, say, 100 dollars in the economy, we know each dollar is worth 1/100th of 100 dollars. But if the government prints 10 more dollars and puts them into the economy, then there are 110 dollars in the economy with no increase in value. Now, each dollar is worth 91 cents. This is inflation.
Now, let's draw in Dr. Reich's complaint. The eeevil corporation raises its prices (which is perfectly legal). Does it matter that the company is profitable? No. This company raised its prices for its own reasons, reasons which are none of Dr. Reich's business. Unless of course the company did something illegal.
Being profitable does not mean a company's products are properly priced. If the company has supply chain problems, staffing problems, or production problems, it may well decide to raise prices. Raising prices is a decision made based on the company's assessment of its own position in the marketplace in relation to its competition, tax policy, oppressive legislation, labor supply, etc, etc.
But we also must consider that if the government is pumping billions (trillions) of additional dollars into the money supply, the company must realize that inflation will mean its pricing will be inadequate. That is, inflation influences not only buying power, but also product pricing.
We would be remiss if we did not also mention that an economy the size of the US's has millions, if not billions of transactions occurring every day. There are thousands of factors affecting the processes of the economy. But for Dr. Reich there is only one relevant one: Greedy corporations.
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