We have pets. At one time we had five dogs and three cats. All the cats rescued themselves by finding us. So did three of the dogs. Ergo, we needed a carpet cleaner. Although we’re down to one cat and two dachshunds, we still have the occasional need for a carpet cleaner.
Last week the “old” carpet cleaning machine died. I’ve never gotten more than four years out of any cleaner, and this was no exception. So, over the weekend I trundled off and purchased a new version of the same brand – one that proved effective over the years.
The price was almost exactly double what I paid four years ago. The design was somewhat better and likely more functional, but essentially the same technology and design. When I checked other makes, the price increases were comparable.
Now, according to the BLS, overall inflation since 2019 has been 19%. So why is my carpet cleaner showing a 100% rise in prices? Most statistical reports I’ve been able to find show that U.S. manufacturers required, on average, price increases of 8% per year over the past few years to maintain profit margins.
Even the average price for new cars has “only” increased some 30% over the past four years. So why have carpet cleaners increased 100%?
I fear that the answer is quite simple. Because on certain product lines, those where the consumer really needs to buy the product now, the manufacturers can charge more, get more profit, and blame the increase on generic “inflation.”
According to a recent study by the Economic Policy Institute, over the past four years, over half (54%) of inflation was caused by increased corporate profits, which makes sense since profits have increased at record rates, while, historically, corporate profit increases have only contributed 11% to inflation.
So let’s put the blame for high inflation where it really belongs – on greedy corporations – because those increased corporate revenues didn’t go to workers [except high paid executives], and the “supply chain” shortages or increased wages weren’t the principal cause of today’s inflation. Excessive profits were.
Which is why my carpet cleaner cost 60% more than it really should have… and why I have absolutely no sympathy for corporate executives opposing higher corporate taxes.