Target & Walmart blasted for ‘greedflation’ by lawmaker as shoppers see $7k increase, but stores say prices are dropping
PENNSYLVANIA Senator Bob Casey has fired a direct shot at retail giants Amazon, Target, and Walmart, accusing them of prioritizing profits over fair pricing for American consumers.
In letters addressed to the CEOs of these companies, Casey expressed deep concern that their pricing decisions during and after the pandemic may have exacerbated financial burdens on everyday families.
Senator Bob Casey has accused Amazon, Target, and Walmart of prioritizing profitsAlamy Live News
Casey cited that substantial corporate profit increases amid consumer financial strainGetty Images - Getty
The senator, facing a critical re-election battle, highlighted a stark statistic.
Corporate profits in the US surged by a staggering 75%, vastly outpacing inflation between June 2020 and June 2022, per NBC News.
Amazon led the pack with a remarkable 61% profit increase, while Target and Walmart saw substantial rises of 31.7% and 10% respectively.
These figures, Casey argues, paint a picture of “greedflation,” where corporate gains soar at the expense of consumer wallets.
“Americans deserve to pay fair prices, and corporations must be held accountable for taking advantage of working families,” Casey asserted in his letters.
‘COP ON THE BEAT’
In an interview with NBC News, Casey escalated his critique, hinting at possible price gouging and the need for regulatory scrutiny.
“Someone’s got to be the cop on the beat here and create a measure of pressure and deterrence for these skyrocketing prices. If they’re not engaged in gouging, then they have nothing to worry about,” he said.
Amazon, responding to the allegations, defended its pricing practices, citing independent studies showing consistently low prices compared to competitors.
“We work hard every day to offer low prices in our store. Third-party analysis confirms Amazon consistently delivers low prices,” Amazon said in a statement, according to NBC News, underscoring its commitment to consumer affordability.
Meanwhile, Target and Walmart have yet to publicly respond to Casey’s accusations, indicating a brewing confrontation over corporate responsibility in pricing strategies, the outlet reported.
The U.S. Sun has reached out to both retail chains but have yet to receive a response.
Economists, however, remain divided on the causes of recent consumer price surges.
Olivier Blanchard from MIT acknowledged sharp increases in corporate profits but cautioned against labeling it as purely exploitative.
“You may disagree, you may hate it, but it’s the way the market works,” he explained, hinting at broader economic factors at play.
“Nobody is trying to school the consumers,” Blanchard said. “It just happens.”
For Casey, the issue boils down to corporate accountability and the need for transparency in pricing decisions.
His inquiries into the motivations behind recent price reductions by these retail giants signal a push for clarity amidst growing consumer frustration.
GREEDFLATION EXPLAINED
“Greedflation” has emerged as a notable term in financial discourse, prompting discussions about its implications for families and the broader economy.
Essentially, greedflation combines “greed” and “inflation,” describing a scenario where companies exploit market conditions to significantly raise prices, thereby contributing to higher inflation rates.
This phenomenon is often perceived as driven by corporate greed, a factor that underscores its contentious nature, per Finance Monthly.
Greedflation has been linked to global price hikes and substantial increases in corporate profits, attracting attention from media outlets and financial analysts who offer varying perspectives on its origins and consequences.
While some attribute greedflation to opportunistic practices that disadvantage consumers, others interpret it as a natural outcome of supply and demand dynamics, exacerbated by disruptions in supply chains.
Regardless of its origins, greedflation has indisputably influenced economic conditions and consumer behavior, shaping spending patterns amidst fluctuating market pressures.
“I don’t think this is interfering in business decisions — we’re not looking at setting prices,” Casey clarified.
“We’re just telling them that if they’ve been involved in price gouging,” he added, “there are going to be consequences.”
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings