Debunking the 'Greedflation' Myth: What’s Really Driving Prices Up?

If you’ve watched the news or scrolled social media lately, you’ve probably seen headlines blaming “corporate greed” for rising prices. The word “greedflation” is being tossed around by progressive groups and politicians, suggesting that big businesses are purposely jacking up prices just to pad their profits. But this explanation misses the mark—and ignores the real economic forces at play.

The idea of greedflation has been pushed by progressive organizations like the Groundwork Collaborative, which claims that over 50% of inflation in mid-2023 was due to corporate profits (Groundwork Collaborative, Q2-Q3 Inflation Breakdown Report, 2023). They cite corporate earnings calls as evidence that companies are raising prices not because they have to, but because they can. Economist Isabella Weber, known for advocating price controls, argues that this behavior constitutes “seller’s inflation” and should be treated with regulatory action (Weber, The Guardian, Dec. 2022).

But not everyone buys into this theory. Treasury Secretary Janet Yellen flatly rejected the idea that greed is the main driver of inflation, stating in 2022: “I wouldn’t say the economy is being driven by greed” (CNBC, June 2022). Jason Furman, former economic advisor to President Obama, dismissed the greedflation argument as politically convenient but economically hollow, noting, “Corporate profits have not moved in a way that would explain inflation” (The New York Times, July 2023).

Here’s the truth: Inflation has been driven by a mix of factors—supply chain disruptions, massive federal stimulus spending, energy constraints, and labor shortages. The COVID-19 pandemic upended global supply chains just as governments pumped trillions into the economy, causing demand to soar while supply couldn’t keep pace. According to the Federal Reserve Bank of San Francisco, pandemic-era fiscal policies contributed up to 3 percentage points to the inflation rate (FRBSF Economic Letter, March 2023).

Meanwhile, the proposed progressive fixes—like windfall profit taxes or price controls—have been tried before and failed. When President Nixon implemented price controls in the 1970s to combat inflation, they led to empty shelves, black markets, and even higher prices in the long run (Brookings Institution, 2022). These policies don’t punish greed—they punish growth.

Let’s be clear: No one likes paying more at the grocery store or gas pump. But blaming capitalism for inflation caused by government overreach, international crises, and mismanagement doesn’t solve anything. Americans deserve real answers—not distractions.

Fortunately, we’ve seen an alternative that works. Under President Donald Trump’s administration, the economy saw record-low unemployment, real wage growth across all income levels, and the lowest inflation in decades—averaging around 1.9% during his term (U.S. Bureau of Labor Statistics, 2017–2020). Trump’s pro-growth policies—like the Tax Cuts and Jobs Act, which lowered the corporate tax rate from 35% to 21% and gave middle-class families meaningful relief—sparked investment and job creation across industries (Tax Foundation, 2018).

Looking ahead, Trump has pledged to restore American energy independence, lifting restrictions on oil, gas, and pipeline projects to reduce energy costs and fight inflation at its source (DonaldJTrump.com, 2024 Campaign Platform). He plans to extend and expand tax relief, cut red tape that holds back small businesses, and renegotiate trade deals to protect American manufacturing and supply chains.

These aren’t just talking points—they’re proven policies that built a stronger, more stable economy. If we want to stop runaway inflation, it’s time to reject the scapegoating and revive a real plan for prosperity.

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