While most of what people tend to watch on television is local news, most of what affects our lives happens at the national and state level.
If you shop, you have noticed that most things have gone up, and the packages have gotten smaller while still paying the same price or more.
If you listen to the Republicans and their fake news, they will often blame President Biden and the Democrats.
Albert Edwards, a global strategist at Société Générale, said, “Companies are not just maintaining margins, not just passing on cost increases, they have used it as a cover to expand margins.”
What does that mean?
The prices of oil, transportation, food ingredients, and other raw materials have fallen in recent months as the shocks stemming from the pandemic and the war in Ukraine have faded. Yet many big businesses have continued raising prices at a rapid clip.
Some of the world’s biggest companies have said they do not plan to change course and will continue increasing prices or keep them at elevated levels for the foreseeable future.
For example;
The prices of oil, transportation, food ingredients, and other raw materials have fallen in recent months as the shocks stemming from the pandemic and the war in Ukraine have faded. Yet many big businesses have continued raising prices at a rapid clip.
Some of the world’s biggest companies have said they do not plan to change course and will continue increasing prices or keep them at elevated levels for the foreseeable future.
For Example:
PepsiCo, the snacks and beverage maker, has become a prime example of how large corporations have countered increased costs, and then some.
Hugh Johnston, the company’s chief financial officer, said in February that PepsiCo had raised its prices by enough to buffer further cost pressures in 2023. At the end of April, the company reported that it had raised the average price across its products by 16 percent in the first three months of the year. That added to a similar size price increase in the fourth quarter of 2022 and increased its profit margin.
“I don’t think our margins are going to deteriorate at all,” Mr. Johnston said in a recent interview with Bloomberg TV. “In fact, what we’ve said for the year is we’ll be at least even with 2022, and may in fact increase margins during the course of the year.”
The bags of Doritos, cartons of Tropicana orange juice and bottles of Gatorade drinks sold by PepsiCo are now substantially pricier. Customers have grumbled, but they have largely kept buying. Shareholders have cheered. PepsiCo declined to comment.
So why do Republicans keep protecting and lowering taxes on those companies while working men and women continue to struggle?
Source of information, New York Times.