Everyone is feeling the impacts of inflation. And, Minnesota’s working families are bearing the brunt of rising prices. But what’s driving these price hikes? Mega-corporations like Amazon and JBS are artificially raising prices to increase their profit margins and Minnesota conservatives couldn’t care less.
Mega-corporations like these saw record profits in 2021. In fact, the Department of Commerce reported that in 2021 corporate profit margins hit the highest level in 70 years. Yet, despite these record-breaking, billion-dollar gains, corporations continue to gouge prices for their own profit.
Progressives in the Minnesota Legislature are working hard to push back against mega-corporations seeking to take advantage of the moment, raise prices and boost their earnings at the expense of hardworking Minnesotans.
Meanwhile, conservatives in Minnesota have turned their backs on families trying to navigate inflation in favor of corporate tax breaks and further profit-boosting for the already wealthy.
Progressives in the Minnesota House recently passed an anti-price gouging bill prohibiting large corporations from inflating prices for essential goods and services. Unfortunately, though crucial for halting corporate exploitation in our state, the bill will likely be blocked by conservatives in the Minnesota Senate.
The need for immediate legislative action couldn’t be more clear; greedy corporations in Minnesota already have a record of artificially raising prices to boost their profits.
In 2020, JBS, a meatpacking corporation with a pork plant in Worthington, Minnesota, was caught conspiring to artificially increase the price of beef to increase the money in their pocket. In 2021, they settled for $52.5 million for plotting to limit supply in the U.S. beef market and inflate prices for their benefit.
No wonder Minnesotans are feeling an increased burden at the grocery store.
Not only are these monopolizing companies trying to raise prices on us, but they are also raking in record annual profits.
Amazon announced $33.36 billion in profits in 2021, a 75% increase from 2020. However, despite bringing in record profits, Amazon announced it was increasing its annual Prime membership cost by $20, a 16.8% price hike. BBC News reported that over 200 million people would be affected by the rising product costs.
This kind of behavior, absurd profit margins, refusing to pay their fair share of taxes, and raising prices on hardworking Minnesotans, are hurting working families, squeezing small businesses, and hampering efforts to rebuild our economy.
Conservatives in the Minnesota Legislature have ignored proactive efforts by progressives to stand up to price-gouging and instead are proposing record tax breaks for big businesses and the wealthy elite. The last thing Minnesotans need is extra money in the hands of CEOs at the expense of our schools and communities.
We need an economy that works for everybody, not just those at the very top.
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