Economist explains record corporate profits despite rising inflation
February 13, 20225:07 PM ET
Heard on All Things Considered
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NPR's Michel Martin talks with economics professor Isabella Weber about
the price hikes and inflation occurring alongside skyrocketing corporate profits.

MICHEL MARTIN, HOST:

Prices are up all over the place - at the gas pump, at the grocery
store, at the car lot. This week, the federal government reported a 7.5% increase in the cost of goods all across the board compared to a year
ago. The consumer price index showed a 4% rise in housing, a 12%
increase in the price of meat, and the cost to buy a used car is up more
than 40%.

But here's another reality. While families are dealing with sticker
shock, profits for companies that put these goods on shelves - well,
those are skyrocketing. Data from the U.S. Commerce Department shows
that corporate profit margins are the largest they've been in 70 years,
and that's caused progressive leaders like Senators Bernie Sanders and Elizabeth Warren to cry foul, saying some companies are using the
pandemic as a cover to raise prices far more than is warranted.

As is often the case where economic theory is concerned, there are a
variety of opinions about this, so we've called Isabella Weber. She is a professor of economics at the University of Massachusetts Amherst. She
has studied pricing policies in the context of rapid economic
transitions, and she is with us now to talk about all this. Professor
Weber, welcome. Thank you so much for joining us.
[snip]

TB

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