When costs go up, corporate monopolies hike prices with astonishing speed. But then, as costs fall, these companies face little or no competition, so they keep their prices high and profit margins fat. Don’t take my word for it; economist Isabella Weber has the receipts showing how price-gouging sellers push inflation higher. She’s listened in on Wall Street earnings calls where executives brag about their pricing strategy. CEOs might see inflation as a chance to boost profits, but everyone else pays the price. Weber is challenging the conventional wisdom that giant companies don’t price-gouge—and she’s been proved right. Top officials in both Europe and the U.S. have started to acknowledge that corporate profits have become a key driver of inflation. Now what? She correctly identified how the Fed’s extreme interest-rate hikes are ill-suited to address this profiteering, arguing it should pause its increases before throwing millions out of work. Our nation needs structural changes to promote competition and investment, and Weber’s bold ideas are helping shift the economic paradigm.
Warren, a Democrat, is a U.S. Senator for Massachusetts
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