Inflation: A Constructed Blame Game
Recent reports, such as one in the Financial Times, suggest that ministers cannot simply dismiss rising costs by blaming 'profiteering.' This framing implies that corporate price hikes are a mere symptom of inflation, rather than a primary driver, and that a more complex, amorphous set of economic forces is at play. However, a closer examination reveals that this narrative often serves to deflect
accountability from corporate entities recording record profits amidst public hardship. Mainstream media frequently portrays inflation as a natural, almost inevitable economic phenomenon driven by supply chain issues, labor shortages, or increased demand. The Financial Times, for instance, emphasizes the difficulty of distinguishing between legitimate price increases and exploitative practices.
This obscures the fact that during periods of economic disruption, corporations, enjoying weakened competition and captive markets, frequently expand profit margins far beyond necessary adjustments for rising input costs. Data from organizations like the Economic Policy Institute consistently show that corporate profits have been a significant contributor to recent inflation, outpacing wage growth
and input costs. This deliberate misdirection is historically consistent. Consider the American public's perception of the 1970s oil crisis. While often attributed solely to OPEC's actions, US oil companies simultaneously reported unprecedented profits, with Exxon's earnings jumping 59% in 1973 alone. This pattern of corporations exploiting crises for financial gain, while public discourse focuses