Pitchfork Economics with Nick Hanauer Greedflation 2.0: How Tariffs Could Become an Excuse for Corporate Price Gouging (with Hal Singer)
May 13, 2025
Hal Singer, an economist and antitrust expert, delves into the phenomenon of greedflation and its potential resurgence with proposed tariffs. He reveals how corporations exploit supply chain issues to unjustly inflate prices, impacting consumer trust. Singer argues that traditional economic measures aren't enough to curb this behavior and emphasizes the urgent need for effective antitrust policies. By understanding the mechanics behind corporate pricing strategies, he warns of the political consequences if unchecked greed continues to shape the economy.
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Corporate Exploitation of Supply Shocks
- Corporations exploited supply chain shocks by raising prices beyond their cost increases during the pandemic.
- This margin expansion was a form of corporate profit taking, not just cost pass-through.
Legal Coordination Mimics Collusion
- Firms coordinate prices using common pricing algorithms or consultants, blurring the line between independent pricing and collusion.
- This pricing coordination is legal but functions effectively as collusion, undermining competition.
Consolidation Enables Price Control
- Market concentration makes coordination of prices easier and more effective.
- Even many small firms can coordinate prices if they use the same pricing algorithms or consultants.
