In a speech on Friday in North Carolina, Vice President Kamala Harris is expected to take on the issue of price gouging by large corporations. Researchers for U. K. think tanks Institute for Public Policy Research and Common Wealth found in late 2023 that profiteering, or “greedflation,” “significantly” boosted prices, leading to increases of 30% or more in corporate profits. “Excessive profits were even larger in the US, where many important sections of the economy are dominated by a few powerful companies,” wrote Phillip Inman of The Guardian.
The July report for consumer prices from the Bureau of Labor Statistics, which came out yesterday, showed that prices rose less than 3% in the previous twelve months. Core inflation has fallen to its lowest rate since April 2021. For well over a year, wages have grown faster than inflation.
Responding to today’s news that inflation is coming down, the stock market ticked up in expectation that the Fed will now be more likely to cut interest rates in September. Applications for small businesses continue to boom across the country, with 19 million new business applications since Vice President Harris and President Biden took office, an annual growth rate 90% higher than prepandemic averages. Congressional Republicans are trying to cut the Small Business Administration and to cut taxes for big corporations.
Politico greeted today’s economic news with a headline saying, “Inflation is easing. Now, Harris has an even bigger problem with the economy.” And the New York Times reported that in a speech in North Carolina, “Harris Is Set to Lay Out an Economic Message Light on Details,” adding that she is expected to tweak Biden administration themes “in a bid to turn the Democratic economic agenda into an asset." Seems out of step with reality.
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