During a House hearing this week, Katie Porter interviewed Mike Konczal, a director at the Roosevelt Institute, the progressive economic think tank , over the primary current cause of inflation. And of course she had visual aids.
"According to this chart, what is the biggest driver of inflation during the pandemic? The blue – the dark blue is the recent period," Porter said.
"It would be corporate profits," he said.
She asked what percentage.
"It is 54 percent, and that number does stay that level of high if you update that number to more recent numbers as well," he said.
"So over half of the increased prices people are paying are coming from increases in corporate profits?"
Konczal said yes. "The unit price index is reflected in corporate profits as opposed to other costs."
"How does that compare to, historically, other periods of inflation or over other periods of economic time?"
"It is significantly higher in this recovery – 11.5 percent."
"And what is it today?" Porter asked.
"53 percent."
"So I want to make sure everyone in America understands this chart. What is a 'unit labor cost?'" she asked.
Wages, he said.
"What is a 'non-labor input cost?' she asked him.
"A variety of things, including maintenance and investments."
"Okay, so I have to buy the stuff to make the widget. I have to have a factory. I have to keep the lights on. I have to hire someone to make the widget. That's this stuff. And this is what I add on, on top?" she said.
Yes, he said.
So, as Porter shows, over half of the inflated prices we pay are due to corporate greed. No wonder they're trying to undermine Democrats in the midterm election.
