Pitchfork Economics with Nick Hanauer

How Outsized Corporate Profits Raised Prices (with Lindsay Owens)

Jul 30, 2024

In this engaging discussion, Lindsay Owens, Executive Director of the Groundwork Collaborative, sheds light on corporate profiteering amidst the pandemic. She reveals how rising corporate profits are tied to decreased competition and increased market concentration. Lindsay emphasizes that these dynamics have given companies unprecedented pricing power, leading to unjustified price hikes for consumers. She advocates for policy changes to enhance competition and transparency, aiming for a fairer economic landscape that prioritizes the consumer.

38:08

Episode guests

Lindsay Owens

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Episode notes

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Quick takeaways

Lindsay Owens highlights that heightened corporate concentration and reduced competition have enabled companies to exploit the pandemic crisis for excessive profits.

The podcast emphasizes the importance of policy interventions, like increased competition and antitrust regulations, to ensure fair pricing and protect consumers.

Deep dives

The Concept of Middle-Out Economics

Building an economy from the middle out emphasizes the importance of a thriving middle class as essential to overall economic success. Unlike the traditional top-down approach, middle-out economics argues that economic prosperity should start with workers and consumers who drive demand and innovation. This philosophy posits that when the middle class flourishes, the benefits extend not only to them but also positively impact wealthier individuals, creating a more balanced and sustainable economy. By focusing on strengthening the middle class, there is potential for a more equitable distribution of wealth and improved economic health for society as a whole.

Intro

3min

Corporate Profiteering in a Post-Pandemic Economy

14min

The Consequences of Market Consolidation and Competition Deficiencies

3min

Combating Corporate Gouging

11min

Understanding the Impact of Corporate Profit Margins and Market Concentration

6min

This week, Nick and Goldy are joined by Lindsay Owens, Executive Director of the Groundwork Collaborative, to discuss Groundwork’s recent reports on corporate profiteering and price gouging during and after the pandemic. Owens attributes the record increases in corporate profits in the last few years to growing corporate concentration and lack of competition. She argues that these two factors gave companies an unprecedented level of market power, and therefore pricing power, which allowed them to exploit the supply chain crisis caused by COVID to drastically raise prices. Owens stresses the need for policy interventions to promote competition, transparency, and fair pricing in the market to ensure a more competitive and consumer-friendly economy.

Lindsay Owens is the Executive Director of the Groundwork Collaborative, known for her expertise in economic policymaking and her work on exposing corporate profiteering in price increases. She leads the organization's mission to create a more equitable economy, providing media commentary and advising policymakers such as Senator Elizabeth Warren, Minnesota Attorney General Keith Ellison, and Congressional Progressive Caucus Chair Pramila Jayapal.

Twitter: @owenslindsay1