"An inflation conspiracy theory is infecting the Democratic Party," The Washington Post frets. "'Greedflation' is a nonsense idea," The Economist insists. "Harris' plan to stop price gouging could create more problems than it solves," CNN warns.
Over the last few years, as the prices of groceries, cars, and other necessities have risen, often dramatically, leading news outlets and influential pundits have claimed that these rising prices are simply a matter of supply and demand. Corporations aren't taking advantage of inflation, we’re told; they're simply responding to it. If materials are in short supply, or if there’s a surge in demand, retailers have no choice but to raise prices to control production flows and costs. Likewise, if prices of goods are significantly higher, then the people who want those goods enough to pay higher prices can still have them.
But these pat arguments don't hold up to scrutiny. Since the most recent round of inflation began, multiple studies have shown that corporations are indeed taking advantage of inflation, using tactics like price gouging to boost profits while creating barriers to quality food, medication, and other essentials. So what explains this discrepancy?
On this episode, we examine the tendency of media to defend corporate price-gouging and other inflationary maneuvers, how high status pundits and Serious Economists critique the White House from the right on this issue and condescend to anyone who might be even slightly suspicious that corporations are animated by something other than just the Invisible Hand, painting them as wacko conspiracy theorist who simply need to take the vaulted "Econ 101."
Our guest is the Revolving Door Project's Dylan Gyauch-Lewis.