When the Shortage Is the Strategy: How Corporations Turned Crises into Record Profits
This article exposes how corporations have used supply constraints and crises to raise prices far beyond what's justified, then refused to lower them even after costs fell. It details the 'rockets and feathers' phenomenon, citing record profit margins and executive admissions, and highlights a history of collusion, from LCD panels to RealPage. It also covers the $166 billion tariff refunds that went to companies, not consumers, and urges consumers to fight back through organized boycotts, citing the success of Croatia's boycott.
Why would I be the first to cut my margins when we just went through a period where we had the world’s best excuse [inflation] to recover margins?
- smallmancontrov
> constrain supply, raise prices far beyond what the constraint justifies, and then refuse to lower them
In a healthy competitive market, this doesn't work. In a Ronald Reagan / Robert Bork / Consumer Welfare Standard market, where the idea that antitrust policy should promote competition is scoffed at and all M&A is allowed so long as a business can scribble with crayons on butcher paper a tall tale about how their merger will totally reduce prices (pinky promise!), an unhealthy low-competition market is the intentional and inevitable result.
- cheriot
> credit card debt hit an all-time high last year ($1.28 trillion, Q4 2025)
Let me inflation adjust that for you: https://fred.stlouisfed.org/graph/?g=1XUpo. Even better, as a percentage of disposable income: https://fred.stlouisfed.org/graph/?g=1XUpt
> real hourly wages, only 3%
Median usual weekly real earnings: Wage and salary workers: 16 years and over: https://fred.stlouisfed.org/graph/?g=1XUpE. Doesn't look so dire to me?
Whenever I see someone quoting economic statistics I look them up on FRED and zoom out a little. Usually I close the article at that point. The "Ongoing collusion" table in this article is interesting, though. Capitalism breaks down without competition.
- deathanatos
This isn't going to get solved at the consumer level. Yes, one perhaps can & should attempt to vote w/ one's wallet, but the real fix is anti-trust law enforcement. TFA knows this,
> Every pattern above can be explained without conspiracy.
(… and in a section titled "Ongoing collusion", too!) but conspiracy also explains some of it: the egg price increases were industry collusion[1]; Americans lost something like $3B to $6B in egg prices due to it. The DOJ permitted them to settle for what effectively amounts to "don't do that again".
Did I try avoiding eggs while they were $6/dz? Absolutely, but meanwhile Tyson ate one of our local meat suppliers, and those prices immediately went up 50%.
[1]: https://en.wikipedia.org/wiki/Egg_Clearinghouse#Price_fixing
- MarkusQ
"NoOneIsHappy.com" appears to be some sort of low-effort demoralization psyop or something. Who'd have guessed with a name like that?
- no_multitudes
This is an interesting example of a pangram false negative. It's very obvious from the jump that substantial AI assistance was used, but feeding some samples in I got a 100% human rating. I wonder if it's a case of adversarial prompting?