CNS News– In a recent poll conducted by Navigator Research, findings reveal a significant shift in Americans’ perception regarding the causes of inflation. The poll, which surveyed 1,000 registered voters from January 25 to 29, 2024, indicates that 3 in 5 Americans now consider corporate greed as a “major cause” of inflation, marking a substantial 15 percent increase from January 2022, where only 44 percent held this belief.
Maryann Cousens, an associate of polling and analytics for Navigator Research, attributed this shift to the prolonged disparity between corporate profits and the financial challenges faced by many Americans. Cousens noted that over the past two years, corporations have seen record profits while individuals struggle financially, leading to an increased perception of corporate greed as a significant problem.
The surge in inflation, reaching 7.5 percent year over year in January 2022 and peaking at 9.1 percent six months later according to the Labor Department’s Consumer Price Index (CPI), has further exacerbated these sentiments. Despite a decrease in inflation to 3.1 percent in January, it still exceeds the Federal Reserve’s goal of 2 percent.
To combat inflation, the Federal Reserve implemented interest rate hikes, raising rates from near zero in March 2022 to a range of 5.25 percent to 5.5 percent by July 2023. However, these actions have also impacted individuals, with higher interest rates eroding savings accumulated during the pandemic and leading to increased delinquencies on credit cards, mortgages, and car loans.
Corporate greed increasingly seen as “major cause” of inflation: Poll https://t.co/H0icCmU0En pic.twitter.com/p4bZgGackk
— The Hill (@thehill) February 14, 2024
In contrast, corporations have continued to thrive financially, with profits remaining above pre-pandemic levels, even during periods of rampant inflation. This divergence between corporate success and individual financial struggles has contributed to the perception of corporate greed as a driver of inflation.
The term “Greedflation” has entered mainstream discourse, with Dictionary.com recently adding it to their lexicon. Defined as a rise in prices driven solely by corporate executives or boards of directors to increase already healthy or excessive profits, greedflation reflects the growing recognition of corporate greed’s role in inflation. Interestingly, the perception of corporate greed’s contribution to inflation transcends party lines.
While traditionally favored by Republicans, the belief that government spending causes inflation is now on par with the belief that corporate greed is a major contributor. The poll indicates a 17 percentage point increase among Democrats and independents who attribute inflation to corporate greed and a 13 percentage point increase among Republicans.
Overall, 84 percent of respondents believe that “corporations being greedy and raising prices to make record profits” contribute to inflation, highlighting the widespread consensus on this issue. However, there are differences in opinion among political affiliations, with Democrats more likely to attribute inflation to corporate greed compared to Republicans.
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Despite Americans’ increasing optimism about their financial situation, as indicated by data from the New York Fed’s Center for Microeconomic Data, President Biden’s handling of the economy remains a point of contention. With an approval rating of 41.2 percent and facing a hypothetical general election match-up against former President Trump, Biden trails by 2.2 percent.
According to a recent Financial Times poll, Trump holds an 11-point lead over Biden regarding who would better handle the economy. This disparity suggests that while Americans may acknowledge the role of corporate greed in inflation, they remain skeptical of Biden’s economic policies and their effectiveness in addressing economic concerns.