Cost of living crisis: Lets pay more to water companies so they can invest more in their shareholders.

[Ekkie Thump]

Marmite maker Unilever's sales soar after hiking prices

Stop buying marmite and magnums for Christ's sake! Domestos isn't the only multi-surface cleaner, Knorr is Hellmann's the only mayonnaise.

Seriously, the next few weeks and months are going to see yet another tranche of large multinationals announcing monster profit increases way in excess of inflation while I expect government and BoE officials to continue to tap the headline rate and chastise workers for aspiring to retain their previous spending power. As George Carlin said, "it's one big club and you ain't in it":

Here's Centrica just passing on supply costs:

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Here's Exxon exercising restraint and demonstrating its public responsibility:

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Here's an IMF study of the last couple of years:

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Here's ECB head Lagarde citing the above study:

“During previous [financial] shocks in the euro area, firms had tended to absorb rising costs in profit margins, as slower growth made consumers less willing to tolerate price hikes. But the special conditions we experienced last year turned this regularity on its head. The sheer scale of input cost growth made it harder for consumers to judge whether price hikes were caused by higher costs or higher profits, fuelling a faster and stronger pass-through. At the same time, pent-up demand in reopening sectors, excess savings, expansionary [government] policies and supply restrictions brought on by bottlenecks gave firms more scope to test consumer demand with higher prices.”

She said corporate profits accounted for about two-thirds of inflation in 2022 compared with the average over the previous 20 years of one-third.

Here's the BoE from the same article:

The Bank of England has yet to produce a study calculating the influence of corporate behaviour on inflation and says it has no plans to embark on a similar study to the one carried out by the ECB.

No way?

System working as intended.

Sharpen the pitchforks.

 

[cafecillos]

System working as intended

Exactly this. This isn't a bug, it's a feature.

 

[Raven]

Time for revolution.

 

[maniak]

System working as intended.

The system is fine and working perfectly. The people on the other hand...

 

[Ish]

It's disgusting but it's how it has been designed and nothing will change because the minority all benefit.

 

[Dr. Dwayne]

Everyday U does good for its shareholders.

 

[neverdie]

Price gouging. Literally illegal in many states, highly suspected, you'd have to have been blind to miss it, and now confimed EU wide. I say fine the lot of em. Profit minus inflation. Then they go on about wage increases and the state of inflation. It's now beyond a joke.

A one third corporate tax, EU. Minimally. That's the biggest disgrace in recent years. Everyone said it was price gouging and everyone who said it, (many), were shouted down. Just burn it to the fecking ground.

 

[OleGunnar20]

Just burn it to the fecking ground.

Yes please. Sick of this shit.

 

[golden_blunder]

That’s pretty disgusting. People are literally making a choice between heating or food and they are backslapping each other because of profits. Disgusting

 

[neverdie]

Was just doing something like this, in the economics thread, working my way toward it, and here it is (at least they released it). But exactly as expected, only far fecking worse. This shit is straight up cartel behavior.

 

[Sarni]

That is basically what all companies have done since they realized people are willing to pay way more for their goods and services, even after their costs have gone down after initial surge there was no urgency to reduce customer prices. It is even happening at lower scale businesses here, like restaurants and small grocery stores. Basic economics really, if your volume declines slightly but margins rapidly increase you're much better off.

Energy, gas are by far the worst because you can't actually get by without them, and companies have been milking customers big time in the last 18-24 months.

 

[Jippy]

Multinational corporations, genocide of the starving nations.

 

[Smores]

That is basically what all companies have done since they realized people are willing to pay way more for their goods and services, even after their costs have gone down after initial surge there was no urgency to reduce prices as customers were still paying. It is even happening at lower scale businesses here, like restaurants and small grocery stores.

Isn't it grand that the only way to ever really roll it back is a full blown recession where we all lose anyway. Basically a lose lose for the public no matter what we do.

If only we had a political party that could see the issue and argue for state nationalisation or greater regulation of key services.

 

[Big Andy]

That is basically what all companies have done since they realized people are willing to pay way more for their goods and services, even after their costs have gone down after initial surge there was no urgency to reduce customer prices. It is even happening at lower scale businesses here, like restaurants and small grocery stores. Basic economics really, if your volume declines slightly but margins rapidly increase you're much better off.

Energy, gas are by far the worst because you can't actually get by without them, and companies have been milking customers big time in the last 18-24 months.

Even Apple are at it for something that probably costs them nothing. My basic iCloud sub has gone up by 20p. Not in and of itself a huge hardship for anyone, but you think how many peope have iCloud subs across the world, and that 20p multiplied by 170m subscribers, which a quick google tells me is the figure that pay for it. and you're looking at an extra £34m a year in revenue for nowt.

 

[Sarni]

Isn't it grand that the only way to ever really roll it back is a full blown recession where we all lose anyway. Basically a lose lose for the public no matter what we do.

If only we had a political party that could see the issue and argue for state nationalisation or greater regulation of key services.

Yeah I don't see how this can go back to normal other than through recession, which is almost inevitable in the next 10 years anyway. Pandemic has turned economy upside down.

 

[4bars]

And then they ban me when i wish billionaires certain things...

 

[Scandi Red]

We meet in here, lads: https://www.redcafe.net/threads/practical-implementations-of-socialism.477509/

 

[Dr. StrangeHate]

Infuriating, all these CEOs would get record pay-outs as well for f***** all of us. It is not really clever or providing value, just a cartel increasing prices.

 

[Pexbo]

That is basically what all companies have done since they realized people are willing to pay way more for their goods and services, even after their costs have gone down after initial surge there was no urgency to reduce customer prices. It is even happening at lower scale businesses here, like restaurants and small grocery stores. Basic economics really, if your volume declines slightly but margins rapidly increase you're much better off.

Energy, gas are by far the worst because you can't actually get by without them, and companies have been milking customers big time in the last 18-24 months.

It’s not about people being willing to pay more, it’s about not having a choice.

Apparently free market economics doesn’t lead to competitive pricing.

It’s a political decision not to curb this price gouging.

 

[Andy_Cole]

Without sounding like a conspiracy loon. But this is why you shouldn't believe the scare mongering media. They all line their pockets from big corporations convincing you of bullshit. Easy money for these corporates. The energy profits are disgusting.

 

[Sarni]

It’s not about people being willing to pay more, it’s about not having a choice.

Apparently free market economics doesn’t lead to competitive pricing.

It’s a political decision not to curb this price gouging.

Well it’s both. When it comes to food and basic needs like having a place to leave, heating and energy then obviously it’s lack of choice.

There’s lots of discretionary spend increases that have happened throughout the last two years that people don’t actually need in their daily life and still pay for despite prices surging.

 

[neverdie]

Pandemic has turned economy upside down.

Unless you're rich, in which case it's just been an accelerated version of the same old shit.

 

[The Corinthian]

There was a poster here repeatedly saying that it's always been about companies protecting their margins.

Spoiler

That poster was me.

 

[Wumminator]

Without sounding like a conspiracy loon. But this is why you shouldn't believe the scare mongering media. They all line their pockets from big corporations convincing you of bullshit. Easy money for these corporates. The energy profits are disgusting.

It’s nothing to do with the scaremongering media. The right wing papers hide this shit because they’re employed by the same people.

 

[Andy_Cole]

It’s nothing to do with the scaremongering media. The right wing papers hide this shit because they’re employed by the same people.

Of course it is. Media shout and shout about the crisis. Then it allows everyone to raise prices and make money. Then the people who are convinced by the said media think it’s the norm that prices are going up and continue to purchase without fuss.

 

[arthurka]

Greed is good

 

[Wumminator]

Of course it is. Media shout and shout about the crisis. Then it allows everyone to raise prices and make money. Then the people who are convinced by the said media think it’s the norm that prices are going up and continue to purchase without fuss.

What crisis out of interest?

 

[VeevaVee]

Sickens me. We're absolutely fecked and it's been timed perfectly my generation hitting our 30s. God knows when I'll be able to afford a house, nevermind afford to keep one running. Every inflated cost contributes to it.

 

[TwoSheds]

It’s nothing to do with the scaremongering media. The right wing papers hide this shit because they’re employed by the same people.

A lot of them also actually believe it though because they like to think they're cleverer than the common folk.

 

[Balljy]

There was a poster here repeatedly saying that it's always been about companies protecting their margins.

Spoiler

That poster was me.

Protecting their margins was optimistic judging by the profits being reported. Raising prices higher than inflation, causing more inflation and then taking the proceeds, it's impressively corrupt.

 

[Fully Fledged]

https://www.bbc.co.uk/news/blogs-the-papers-66263970

And the Guardian has details of government plans to boost public funding of the monarchy by 45% in two years' time.
It says a review of funding published by the Treasury yesterday revealed that the royal family's budget is due to go from £86m a year, to £125m.
The paper said the Treasury hadn't disputed that the sovereign grant was expected to rise significantly in the coming years.

 

[Mr Pigeon]

Weird. I was under the impression that my public sector pay rise was to blame for inflation?

 

[Fully Fledged]

Weird. I was under the impression that my public sector pay rise was to blame for inflation?

The optics are awful.

 

[Dr. StrangeHate]

Protecting their margins was optimistic judging by the profits being reported. Raising prices higher than inflation, causing more inflation and then taking the proceeds, it's impressively corrupt.

If this was France there would be some CEO houses and offices burnt by now.
Don't tell me the same is happening there.

 

[maximus419]

Just a system of modern slavery these days. Price people out of existence and the only way you can exist is work until you drop, gone are the days where a full time job will earn you enough money to own a home pay the bills and have a little left over for a few little enjoyments in life.

People are literally being forced into a game of monopoly but starting out so poor and unable to scrape enough to get a home, let alone pay the bills and expected to fund a retirement pension! It's sick, how we havent seen mass revolution is beyond me, it's surely a matter of when rather than if. If people don't fight back I wonder how many people will even bother to carry on, you're better turning to crime and either hope to get away with it or at worst you get put in prison and have roof over your head, and food to eat. Something many people outside of prison aren't getting.

 

[horsechoker]

Just a system of modern slavery these days. Price people out of existence and the only way you can exist is work until you drop, gone are the days where a full time job will earn you enough money to own a home pay the bills and have a little left over for a few little enjoyments in life.

People are literally being forced into a game of monopoly but starting out so poor and unable to scrape enough to get a home, let alone pay the bills and expected to fund a retirement pension! It's sick, how we havent seen mass revolution is beyond me, it's surely a matter of when rather than if. If people don't fight back I wonder how many people will even bother to carry on, you're better turning to crime and either hope to get away with it or at worst you get put in prison and have roof over your head, and food to eat. Something many people outside of prison aren't getting.

Until they take away food

 

[calodo2003]

cnuts, the lot of them.

 

[That'sHernandez]

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I want to pay fecking taxes, not dividends

 

[Ludens the Red]

Weird. I was under the impression that my public sector pay rise was to blame for inflation?

It is. Rishi Sunak said so. You’re scum. This thread is a smokescreen.

 

[Neil_Buchanan]

It’s just gonna continue this way, nothing we can do about it now. All sense of community is dead, very few people actually care enough about others enough to make any sort of sacrifice or come together in any meaningful way.