“Greedflation” is a thing, the FTC says
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 22 March 2024
⏱️ 8 minutes
🧾️ Download transcript
Summary
Are grocery prices high because of supply chain problems and rising costs? Or is it because major grocery chains took advantage of those trends to pad their profits? A new report from the Federal Trade Commission suggests the latter. We’ll unpack what the report says. Plus, Biden cancels $5.8 billion in student debt for public service workers, and we’ll hear key takeaways from CERAWeek, the “Super Bowl” of energy.
Transcript
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| 0:00.0 | Marketplace's March fundraiser is ending on Friday at midnight and we still need your help to reach our goal and stay on track for this fiscal year. |
| 0:09.0 | Your supportive marketplace right now will help us continue to provide the essential news you rely on every day. |
| 0:16.0 | Please chip in now at Marketplace.org. |
| 0:20.0 | Donate. Greedflation, the FTC says it's a thing. |
| 0:27.0 | From Marketplace, I'm Sabrie Benashore and for David Brancaccio. |
| 0:31.0 | Are grocery prices as high as they are because of supply chain problems and |
| 0:35.4 | rising costs or because major grocery chains took advantage of those trends to |
| 0:40.4 | pad their profits? A new report from the Federal Trade Commission suggests the latter. |
| 0:45.8 | Marketplace's Nova Safo has more. |
| 0:48.0 | By one measure, the FTC report says big grocery retailers generally have better profit margins now than they did |
| 0:55.0 | pre- Pandemic and in fact those margins are widening. That casts doubt on claims |
| 0:59.7 | that higher prices are directly linked to higher input costs such as raw materials, labor, and |
| 1:04.8 | transportation. The report says further inquiry is warranted. And it found that the way relationships |
| 1:10.2 | between suppliers and large grocers are constructed likely hurt competition |
| 1:14.7 | during the height of the pandemic because some pressured suppliers to favor them. |
| 1:18.6 | The National Grocers Association, which represents independent shops, said the report substantiates the |
| 1:24.0 | firsthand experiences of its members and it urged Congress and the FTC to |
| 1:28.6 | take action. I'm Nova Soph before marketplace. |
| 1:31.0 | The Biden administration this week approved an additional $5.8 billion in student debt relief. |
| 1:38.2 | This will affect nearly 78,000 people who work in some non-profit or government jobs, Marketplace's Stephanie Hughes has more. |
| 1:46.0 | Let's say you're a public school teacher with a bunch of student debt. |
| 1:49.0 | Under the Public Service Loan Forgiveness Program, you could make payments on that debt for a certain number of years, |
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