The Price of Greed: How Corporate Price Gouging is Squeezing American Families

As you stand in the grocery checkout line, eyeing the rising total on the register, or refill your prescription only to be shocked by the new price, you’re likely feeling the pressure. You’re not alone. Across the country, American families are feeling the squeeze of corporate price gouging, an alarming trend that’s driving up the cost of living and making it harder to make ends meet.

But here’s the kicker: while we’re all tightening our belts, corporate profits are soaring to new heights.

The Grocery Bill That Keeps Growing

Let’s start with something we all experience—grocery shopping. Maybe you’ve noticed that your grocery bill has ballooned, even though you’re buying the same items you always have. What’s going on here?

It’s not your imagination. Grocery giants like Kroger, Walmart, Target, and Costco have been raking in consistently high profits year over year. These profits aren’t just because of higher supply chain costs during the pandemic. No, these companies are creatively raising prices to maximize profits. And they’re not passing those savings onto you—the consumer who’s feeling the pinch.

And it might get worse. Kroger and Albertsons have proposed a merger that could reduce competition, leading to fewer grocery stores and—you guessed it—higher prices. Thankfully, the Federal Trade Commission (FTC) and the Attorney General of Colorado have stepped in to block this merger, at least for now. But the fact that such a merger was even on the table shows how little these corporations are prioritizing consumers.

Dining Out? Not Without a Price

If you’re thinking about cutting back on dining out to save some cash, you’re not alone. But even fast-food joints and restaurants aren’t immune from price hikes. Companies like McDonald’s, Domino’s Pizza, Yum! Brands, and Coca-Cola have all increased their prices while consumers struggle. Why? To reward their wealthy shareholders with hundreds of millions in dividends and buybacks.

Interestingly, this greed is starting to backfire. Consumers are pushing back against these rising prices. For instance, after a series of price hikes last year, PepsiCo found that customers were “balking” at paying more for the same products. Maybe we’re finally hitting a breaking point.

Big Pharma: Profits Over People

Let’s move from food to another essential—healthcare. The Biden-Harris administration recently announced the final negotiated prices for Medicare under the Inflation Reduction Act, promising big savings for beneficiaries. But Big Pharma wasn’t too happy about it.

Despite pulling in a whopping $93.5 billion in profits in 2023, pharmaceutical companies with drugs up for negotiation have fought tooth and nail to block this program. The pharmaceutical industry spent nearly $400 million on lobbying in 2022 alone to keep prices high for seniors and other Medicare patients. Why? To protect their massive profits.

It gets worse. While the federal government invested billions in research for these drugs, many of these companies spend far more on executive compensation and shareholder rewards than on actual research and development. They’re also exploiting patent laws to keep prices high for as long as possible, making it clear that profit—not people—is their top priority.

The Rising Cost of a Roof Over Your Head

Finally, let’s talk about something that hits close to home—literally. Housing costs have been on a steep climb, with the six largest publicly traded apartment companies bringing in nearly $300 million in increased profits in just the first quarter of 2024. Much of this profit comes from—you guessed it—rent increases.

Over half of U.S. renters are now spending more than 30% of their income on rent, a financial strain that’s becoming unbearable for many families. Even worse, many of these companies are under investigation for allegedly using software to fix rent prices, potentially driving up costs even further.

What Can We Do?

So, what can we do in the face of such blatant corporate greed? First, it’s essential to stay informed. Know which companies are putting profits over people, and vote with your wallet whenever possible. Support legislation and leaders who prioritize consumer protection and are willing to stand up to big corporations.

Finally, spread the word. The more people understand what’s going on behind the scenes, the more pressure we can put on these corporations to change their ways. After all, we all deserve to live in a world where families can thrive, not just survive.

As we continue to feel the pressure at the checkout line, at the pharmacy, and when paying rent, it’s more important than ever to stand together and demand that these companies prioritize people over profits. Only then can we begin to loosen the grip that corporate price gouging has on our daily lives.

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