Corporate Greed Is Crushing Families and Fueling America's Inflation Crisis

The numbers landed like a brick through a window. In April 2025, the University of Michigan's Consumer Sentiment Index cratered to 52.2, one of its lowest readings ever, signaling a nation gripped by dread. Families across the country, from Detroit's assembly lines to California's tech hubs, are staring down a future clouded by soaring prices and shrinking wallets. Inflation expectations for the next year spiked to 6.5%, a level not seen since the early 1980s, while longer-term fears hover at 4.4%. This isn't just a statistic; it's a collective gut-check, a warning that the American dream is slipping through our fingers.

The survey's grim findings cut across every divide, income, age, education, no one is spared. Middle-income households, the backbone of our economy, are hit hardest, their optimism eroded by relentless price hikes and uncertainty about jobs and wages. This pervasive pessimism isn't abstract; it translates into real-world pain, fewer dinners out, canceled vacations, and a growing sense that the system is rigged against the average person.

What's driving this crisis? The answer lies not in the usual scapegoats, generous government aid or reckless spending, but in a more insidious force: corporate profiteering. While families tighten their belts, a handful of powerful firms are raking in record profits, exploiting supply chain chaos and global shocks to jack up prices. The evidence is clear, and the stakes are too high to ignore.

This moment demands a reckoning. The Biden administration's efforts to stabilize the economy through targeted aid were necessary lifelines, but they aren't the root of this inflation spiral. To fix this, we need bold action to rein in corporate greed and rebuild a system that prioritizes people over profits.

Look at the data, and the story becomes unmistakable. Research from the Economic Policy Institute reveals that corporate profit margins have accounted for roughly a third of price increases since 2019, far exceeding the historical norm of 11.5%. This isn't a coincidence; it's a profit-price spiral, where dominant companies in concentrated industries, from meatpacking to energy, raise prices well beyond their costs. They aren't just passing on expenses; they're padding their bottom lines while families struggle to buy groceries.

Supply chain disruptions, from Red Sea conflicts to port strikes, have undeniably strained global markets, pushing up costs for goods. But these challenges don't fully explain the price surges. Companies have seized on these disruptions as cover to inflate prices, knowing consumers have little choice but to pay. The result? Record corporate earnings while the personal saving rate climbs to 4.6%, as cautious households brace for worse to come.

Contrast this with the narrative pushed by those who blame government aid. They point to the $1.9 trillion American Rescue Plan as the spark that overheated the economy. Yes, the plan boosted demand, but it also kept millions from poverty during a historic crisis. Critics conveniently ignore that inflation was already brewing due to global shocks, like the Russia-Ukraine war, and corporate price hikes. Their argument falls apart when you consider that austerity would have plunged us into a deeper recession, not solved inflation.

Some policymakers and economists argue that the Federal Reserve's loose monetary policy and excessive government spending are the true drivers of inflation. They claim the Fed's near-zero interest rates and massive asset purchases flooded the economy with cash, while stimulus checks fueled runaway demand. This view, rooted in the monetarist ideas of Milton Friedman, has a certain tidy logic, but it oversimplifies a complex reality.

The Fed's actions, like the Biden administration's aid, were critical to averting economic collapse during the pandemic. Without them, we'd have faced mass unemployment and a prolonged downturn. Supply chain bottlenecks and corporate pricing power, not just demand, have sustained inflation. Blaming the Fed or fiscal policy alone ignores the global context and lets corporations off the hook. It's a distraction, one that shifts focus from the need for structural reforms to curb market concentration.

So, what do we do? First, we need to strengthen antitrust enforcement to break up monopolies and restore competition. The Biden administration has already taken steps here, investigating price-gouging in key sectors, but more must be done. Regulatory reforms can limit the ability of dominant firms to exploit crises, ensuring price hikes reflect actual costs, not opportunistic greed.

Second, we must invest in supply chain resilience. This means funding infrastructure, supporting domestic manufacturing, and reducing reliance on volatile global networks. These aren't quick fixes, but they're essential to prevent future disruptions from becoming corporate windfalls. Targeted fiscal support, not broad cuts, will help families weather this storm without fueling inflation further.

Finally, the Federal Reserve must tread carefully. Its rate hikes, now holding steady at 4.25%-4.5%, have helped cool inflation but risk choking growth. With GDP forecasts down to 1.7% for 2025, we can't afford policies that prioritize price stability over jobs and wages. A balanced approach, paired with corporate accountability, is the only way to restore confidence.

The University of Michigan's survey is more than a snapshot; it's a wake-up call. Families are losing faith, not just in the economy but in the promise of fairness and opportunity. Corporate profiteering, unchecked for too long, has turned a manageable challenge into a crisis. We can't let this continue.

This is a fight for the soul of our economy. By holding corporations accountable, investing in resilience, and protecting workers and families, we can rebuild trust and chart a path to stability. The alternative, a world where profits trump people, is unacceptable. Let's act now, before the damage becomes irreparable.