Corporate profits hit an all-time high in 2023.
Profit margins were at levels not seen in decades.
It just so happens that in 75% of US industries, fewer companies control more of the business than 20 years ago.
Minimal competition means maximized price-gouging.
@rbreich Interesting numbers in this pod. 17-56% - change in average markup from 1980 to 2020. Though big tech vastly responsible, others unchanged.
https://overcast.fm/+AAIPMbLITFg
More surprising is that the percentage of startup firms has halved in that time.
Recent reports claimed the average global mark-up, the difference between the price of production and the price that product is sold for, rose from 7% in 1980 to 59% by 2020.So is this true? Are some companies choosing to charge us more than ever for their products?We investigate the accuracy of these claims, and which companies are responsible with the help of Jan Eeckhout a Professor of Economics at Pompeu Fabra University in BarcelonaPresenter: Kate Lamble Producer: Beth Ashmead Latham Production co-ordinator: Katie Morrison Sound mix: Neil Churchill Editor: Richard Vadon
@rbreich Rather than proposing price controls, Kamala Harris should propose limiting M&A for companies found to be price gouging. The metric should involve percentages of price increase, profit margin, executive pay and share buybacks vs. wage increases for the bottom 20% of employees.
I suspect that the threat of being blocked from M&A would get the attention of the big food and grocery companies.
Britz 🇺🇸
Robert Reich
Richard R Lee
Bob Thomson
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