A top economist warned this week that the ongoing trend of rising consumer costs and sky-high corporate profits is pushing the global economy to the brink of what he says may be “the end of capitalism.”
Global strategist for one of the world’s leading banks, Société Générale, Albert Edwards, wrote in his weekly publication, Global Strategy Weekly, a scathing rebuke of corporations engaging in what has come to be known as Greedflation. The term refers to corporations taking advantage of economic or global circumstances to raise prices and rake in more profit.
Edwards called the greed of corporations in recent years “unprecedented and astonishing,” and lambasted major corporations for using the Ukraine war and the pandemic as an “excuse” to raise prices for consumers. Edwards specifically referenced a report from the Bureau of Economic Analysis last week that showed corporate profits in the fourth quarter last year were still close to record high.
The fear, according to Edwards, is that consumers will not tolerate rising prices much longer. “The end of Greedflation must surely come. Otherwise, we may be looking at the end of capitalism,” he wrote. “This is a big issue for policymakers that simply cannot be ignored any longer.”
ARTICLE: LAURA SPIVAK
MANAGING EDITOR: LUKE MOCHERMAN
PHOTO CREDIT: FORTUNE
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