A new report from the Groundwork Collaborative said corporations are taking advantage of the pandemic to drive up costs for things such as prescription drugs, groceries and diapers. The authors pointed to corporate earnings calls in which some CEOs openly boast about their price hikes.
The report details near-record corporate profits while the U.S. Commerce Department noted these margins are at their highest level in 70 years. Corporate leaders argue the spikes are largely fueled by supply-chain issues and labor shortages, but the Groundwork Collaborative says these arguments are a shield for decades of corporations monopolizing certain industries, creating less competition and worsening supply issues that we are now seeing.
Minnesota’s attorney general has called for legislation on the issue, including updates to anti-competitive statues. The report, though, said a broader crackdown is needed to go along with more investment in supply-chain infrastructure, to see relief.