Watchdog group exposes epidemic of corporate profiteering

WASHINGTON – A progressive watchdog group has revealed that several major consumer goods companies have benefited from price increases that have led to higher net profits.

The companies, which are listed in the top 500 on stock exchanges, are using their pricing power to raise costs for consumers.

 In a report, Accountable.us expressed concern about the persistence of this epidemic of corporate profits.

Liz Zelnick, spokeswoman for the group, stressed that Congress must take serious action to address this problem.

According to the report, executives at the leading publicly traded companies in the U.S. openly admit to using their pricing power. This strategy is aimed at boosting sales and profits, which are then distributed to wealthy shareholders.

Accountable.US cited executives from prominent companies such as Kimberly-Clark, PepsiCo, General Mills and Tyson Foods to substantiate its findings.

Kimberly-Clark, known for its consumer products such as toilet paper and diapers, reported a 6.3% year-over-year increase in net income for fiscal 2022, which totaled nearly $2 billion.

Shareholders were rewarded with $1.7 billion through share repurchases and dividends.

Similarly, Tyson Foods’ net income increased from $3 billion in FY 2021 to more than $3.2 billion in FY 2022, resulting in $1.35 billion in shareholder rewards, including a significant increase in share repurchases.

The Bureau of Labor Statistics recently released data indicating a 4% year-over-year increase in the Consumer Price Index, the smallest increase since 2021.

The New York Times reported last month that despite the decline in prices of major commodities, many large companies continue to raise their prices rapidly.

These companies have signaled their intention to stay the course. As a result, corporate profits in the U.S. reached record levels in the first quarter of 2023, according to recent data.