Corporations: The Real Culprits Behind Rising Prices and Economic Strain

By Javar Juarez

Monday, May 27th, 2024 Last Updated: 9:00am EST

Columbia, S.C. (CUBNSC) -  Since the Covid-19 Pandemic, American consumers have faced a turbulent economy marked by rising prices and inflation. However, a startling revelation has come to light: major corporations like Target and Walmart have started slashing prices, revealing a dark secret—they could have done this all along. This revelation begs the question: who is truly to blame for the economic strain on the American people?

Source: Getty

For years, corporations have offloaded their irresponsible greed into the political sphere, blaming the Biden administration for the country’s economic woes. But this isn’t just about politics. It’s about how political interests have allowed corporations to maintain a status quo of greed and vanity.

Large companies are on the brink of significant closures due to inflated prices, which were raised for no other reason than to line their pockets and please greedy shareholders. This practice has created an expanded elite class while wiping out middle America. Political forces use this to deflect corporate responsibility, ensuring corporations maintain their status as “persons” under the law, with all the accompanying rights and privileges.

The American people have been duped. Robert Reich, former Secretary of Labor under the Clinton administration, highlighted this on social media, urging the media to tell the full story. He posted: “Memo to the media: Don't write about corporations suddenly lowering prices without mentioning how their profits have been skyrocketing or their tax bills have been shrinking. They could have kept prices lower all along. They chose not to. Give people the full picture.”

At a recent rally in New York, Madaline Brame, a Blexit activist, expressed frustration at a "pro-Trump rally" which prominently featured people of color attending in mass. She criticized the Democrats for allowing cannabis dispensaries and welfare to proliferate in minority communities. However, the real issue lies with the financial corruption in New York, home to the largest Fortune 100 and 500 companies. These corporations set the tone for the American economy, especially after the Supreme Court granted them personhood, allowing them to interfere in political and daily life.

During the pandemic, corporations created monopolies, raising fees and stuffing their pockets while the average American struggled. CEOs like Starbucks’ Laxman Narasimhan, who stands to earn a $28 million pay package, have acknowledged that their companies are now feeling the impact of budget-conscious consumers opting for more affordable options. Essentially, Americans are no longer interested in overpriced specialty drinks and corporate coffee culture. 

At issue, are companies like Live Nation, which must prove it does not hold a monopoly over live events if it hopes to avoid a breakup with Ticketmaster, legal experts say. Following a two-year investigation, the Department of Justice (DOJ) claims that Live Nation, the parent company of Ticketmaster, holds an illegal monopoly, given its 80 percent market share for primary ticket sales in the nation’s largest venues. The DOJ's 124-page lawsuit details how fees are collected from every aspect of a live event — from merchandise to concessions to parking — and alleges that venues have no choice but to partner with Ticketmaster to sell tickets.

Justice Dept. Sues Live Nation 

Live Nation counters that it faces more competition than ever and that it does not have unilateral control over ticket pricing, which is set by artists. They argue that high consumer demand for tickets, as evidenced by secondary ticket sales, justifies the prices. However, the DOJ's bombshell lawsuit indicates a potentially lengthy legal battle ahead.

Under the Biden administration, significant economic progress has been made, despite poor messaging from Democrats. Since Biden took office, the economy has gained 15 million jobs, unemployment has remained under 4 percent, and wages are rising. By contrast, under Trump, the economy lost 2.9 million jobs, and the unemployment rate rose significantly. Trump’s tax cuts for the wealthy and big corporations only worsened the national debt and economic inequality.

Moreover, Biden’s administration has made strides in reducing the trade deficit with China, improving the stock market, and expanding health insurance coverage. The American Rescue Plan and the Inflation Reduction Act have helped lower consumer prices, and investments in infrastructure and green technologies are rebuilding the middle class. Yet, this progress is often overshadowed by media coverage of conflict and sensationalism.

Trump’s record on the economy and antitrust enforcement was abysmal, while Biden has been the most activist trustbuster in decades. The contrast between Trump’s narcissistic leadership and Biden’s competent governance is stark. However, the media’s focus on conflict and drama often leaves Biden’s achievements unnoticed. Additionally, red state governors and state governments have blocked federal aid intended to expand infrastructure and Medicaid, even though many have significantly benefited from federal assistance. These states rarely credit the Biden administration for enabling them to afford initiatives beyond their usual budgets.

To address this, Democrats need to highlight Biden’s character and responsible leadership. By contrasting Trump’s unhinged behavior with Biden’s mature governance, they can show Americans the real progress being made. It’s time for the American people to see through the distractions and recognize the true drivers of economic strain—corporate greed and political manipulation.

Work Cited:

Environmental Defense Fund. "The biggest thing Congress has ever done to address climate change." August 12, 2022. Accessed May 27, 2024. https://www.edf.org/blog/2022/08/12/biggest-thing-congress-has-ever-done-address-climate-change?ub_tg=372&ub_o=26&ub_cta=4&utm_source=google&utm_campaign=edf_ira_upd_pmt&utm_medium=ad&utm_id=1666800788&gad_source=1&gclid=Cj0KCQjw3tCyBhDBARIsAEY0XNllIZjespSpdha_0w6mI8e0LFmfGGwCkbfg-4HBT_8x2dkhxxpIciAaAuWxEALw_wcB&gclsrc=aw.ds

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CBS News. "Starbucks CEO: Sales are being impacted by 'challenging economic conditions.'" March 23, 2023. Accessed May 27, 2024. https://www.cbsnews.com/news/starbucks-howard-schultz-sales/

CNN Business. "Target and Walmart reveal how they are dealing with inflation." May 23, 2024. Accessed May 27, 2024. https://www.cnn.com/2024/05/23/investing/premarket-stocks-trading-target-walmart-inflation/index.html

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Business Insider. "Starbucks CEO Laxman Narasimhan's salary includes a $1.6 million signing bonus and $13.6 million in equity." March 24, 2023. Accessed May 27, 2024. https://www.businessinsider.com/starbucks-ceo-salary-laxman-narasimhan-pay-signing-bonus-equity-2023-3

Rolling Stone. "DOJ vs. Live Nation: What’s Next for the Ticketmaster Monopoly Case." May 23, 2024. Accessed May 27, 2024. https://www.rollingstone.com/music/music-features/doj-live-nation-ticketmaster-next-steps-1235027648/

U.S. Department of Justice. "Justice Department Sues Live Nation and Ticketmaster for Monopolizing Markets Across Live Concert Industry." November 16, 2024. Accessed May 27, 2024. https://www.justice.gov/opa/pr/justice-department-sues-live-nation-ticketmaster-monopolizing-markets-across-live-concert

Groundwork Collaborative. "Corporate Profits Report." January 17, 2024. Accessed May 27, 2024. https://groundworkcollaborative.org/wp-content/uploads/2024/01/24.01.17-GWC-Corporate-Profits-Report.pdf

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