>Certain corporations are using the cover of inflation to raise prices excessively, resulting in record profits and profit margins.
Is this a bad thing? The paragraph later goes list examples which were shipping, rental car, meat processing, and oil and gas. All of them experienced some supply/demand imbalance (ie. too little supply or too much demand). In that sort of situation, isn't it better to let prices go up until supply meets demand, rather than leaving prices as it is? Sure, paying higher prices suck, but if demand outstrips supply you'll have shortages. During the pandemic we saw this happen with GPUs and game consoles, because OEMs were reluctant to hike prices and/or institute an auction system. They avoided a PR backlash from it and were able to channel the hate towards "scalpers", but the situation for the consumer wasn't really any better. I doubt consumers would want empty shelves at the butcher, for instance.
>Below are key findings from the staff analysis:
> ...
>Certain corporations are using the cover of inflation to raise prices excessively, resulting in record profits and profit margins.
Is this a bad thing? The paragraph later goes list examples which were shipping, rental car, meat processing, and oil and gas. All of them experienced some supply/demand imbalance (ie. too little supply or too much demand). In that sort of situation, isn't it better to let prices go up until supply meets demand, rather than leaving prices as it is? Sure, paying higher prices suck, but if demand outstrips supply you'll have shortages. During the pandemic we saw this happen with GPUs and game consoles, because OEMs were reluctant to hike prices and/or institute an auction system. They avoided a PR backlash from it and were able to channel the hate towards "scalpers", but the situation for the consumer wasn't really any better. I doubt consumers would want empty shelves at the butcher, for instance.