An inflation conspiracy theory is infecting the Democratic Party

m.knox

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Aug 20, 2003
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WaPo none the less.

https://www.washingtonpost.com/opin...iracy-theory-on-inflation-makes-things-worse/

A conspiracy theory has been infecting the Democratic Party, its progressive base, even the White House. It’s not quite as self-sabotaging as the horse-dewormer-cures-covid false theory that swept up many Republicans last year, but it’s pretty damaging nonetheless.

Call it “Greedflation.”

The theory goes something like this: The reason prices are up so much is that companies have gotten “greedy” and are conspiring to “pad their profits,” “profiteer” and “price-gouge.” No one has managed to define “profiteering” and “price-gouging” more specifically than “raising prices more than I’d like.”

For example, a bill introduced on Thursday by Democratic Sens. Elizabeth Warren (Mass.) and Tammy Baldwin (Wis.) and Rep. Jan Schakowsky (D-Ill.) bans “price-gouging,” which it defines as “unconscionably excessive” pricing.

What counts as an “unconscionably excessive” price, you ask? TBD, but it’s definitely going to be illegal.

Why are companies, which have always been “greedy” (or, one might say, “profit-maximizing”), able to raise prices now? What changed between early 2020, when corporate profits and inflation were plummeting, and today, when both metrics are “unconscionably” up?

The answer is important, because it determines what policymakers can or should do about it.
 

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