The Greedflation Playbook: How Financial Elites Blame Workers, Not Corporate Profits

The Elephant in the Room: Acknowledging 'Greedflation'

For too long, the narrative around inflation has been overly simplistic, often pointing fingers at supply chain shocks, global conflicts, or even, quite incredibly, the resilience of consumer demand. But what if a significant piece of the puzzle lay closer to home, in the boardrooms of multinational corporations? The recent warning from Bank of England interest rate-setter Catherine Mann suggests exactly this. Mann explicitly stated her wariness of firms "looking to rebuild their profit margins after a squeeze in recent years," cautioning retailers and consumer goods companies against "pushing up prices by more than the increase in their costs."

"I need to see the loss of pricing power, I need to see that firms are starting to be much more moderate in setting their prices," Mann declared, according to The Guardian. This is a crucial admission, an acknowledgement from within the highest echelons of financial power that ProfitsOverPeople is not merely an activist slogan, but a verifiable economic force driving up prices.

This isn't an isolated observation. Trade unions and a growing chorus of academic economists have been highlighting this trend for years. They point to how large firms, especially those with significant market power, have used periods of disruption – like the pandemic – to inflate prices far beyond their increased costs. The result? Record profits for corporations, while the public shoulders the burden of rising living costs. This is the essence of greedflation, a term that accurately captures the mechanics of unchecked corporate power.

The Swift Pivot: Blaming Labor, Despite the Evidence

Here's where the pattern, the blame game: shifting scrutiny from capital to labor amidst 'greedflation', truly crystallizes. Almost in lockstep with Mann’s observations, the Bank of England’s chief economist, Huw Pill, voiced a different, yet familiar, concern. Pill suggested that a "sea change in the labour market" meant "higher wages would persist into 2027," potentially thwarting inflation control. This argument, that rising wages are the primary driver of inflation, is a classic maneuver in the ClassWarfareEconomics playbook.

But here's what they're not telling you, or at least not emphasizing with the same urgency: the very same Guardian article that reported Pill’s concerns also cited UK labour market data published just days prior. These figures revealed a fall in employment, a drop in wage growth, and a rise in vacancies – clear indicators of a weakening labor market. So, how can "persistent higher wages" be the existential threat when the data suggests the exact opposite? It’s a convenient narrative designed to justify WageSuppression and deflect from the uncomfortable truth of corporate greed.

The contradiction is stark. While Mann points to the "margin between the dock and the shelf" where goods price inflation is "actually going up, not down" due to corporate action, Pill shifts focus to a labor market that is demonstrably weakening. This is a deliberate misdirection, aiming to convince the public that the problem lies with the very people struggling the most, rather than the corporations enjoying surging profits.

The Systemic Playbook: Blame the Worker

This isn't just about two economists with differing views; it’s about a deeply ingrained SystemicBias within institutions designed to regulate our economy. For decades, the dominant economic narrative, especially from central banks and mainstream media, has been quick to frame wage increases as inflationary spirals, while overlooking or downplaying the impact of corporate markups and extraordinary profit growth. This is the essence of the BlameTheWorker mentality, a convenient distraction from the real engines of inequality.

Consider the historical context: every period of significant inflation or economic upheaval sees a push to control labor costs. Yet, when do we see similar calls for companies to voluntarily reduce their profit margins for the greater good? Rarely. This double standard reveals the true agenda: maintaining the existing power structures where capital accumulation is prioritized above all else. When faced with the uncomfortable truth of profit-price spirals, the default response is to pivot to wage-push inflation, even when evidence contradicts it.

This narrative isn’t accidental; it’s a deliberate strategy to curb the bargaining power of labor. If workers are convinced that their demands for fairer wages are "irresponsible" or "inflationary," they are less likely to organize and fight for better conditions. This plays directly into the hands of corporations seeking to maximize profits, ensuring that any economic recovery disproportionately benefits shareholders and executives, not the frontline workers who create the actual value. This is RadicalLaborAnalysis in action, discerning the subtle yet profound mechanisms that keep workers disempowered.

The Real 'Battle Against Inflation': A War on Wages

The language itself is telling. Catherine Mann, despite her acknowledgement of corporate price hikes, previously stated she was ready to cut interest rates "steeply once the battle against inflation is won." But what constitutes "winning" this battle? For institutions steeped in conventional economic thinking, it often means the suppression of wages and a softening of the labor market – even if that comes at the cost of working families' living standards. Interest rate hikes, ostensibly to cool inflation, have a direct impact on the cost of borrowing for ordinary people, making mortgages and loans more expensive, further squeezing household budgets.

Meanwhile, the very corporations accused of greedflation are quietly consolidating their gains. The "squeeze in recent years" that Mann referenced for firms often precedes periods of exceptional profit growth. They are not merely recovering; they are leveraging economic instability to expand their profit margins to unprecedented levels. This dynamic highlights the deeply asymmetrical nature of our economic system: crises for the many often become opportunities for the few.

The investment bank Goldman Sachs, for instance, now expects UK interest rates to be lowered to 3% by next February, a rate still significantly higher than the near-zero rates that prevailed for years, indicating a continued, albeit moderated, tightening. This sustained pressure keeps a lid on borrowing and, by extension, economic activity that might empower labor. It’s a subtle but effective way of reinforcing ProfitsOverPeople, ensuring that the economic recovery continues to be a top-down affair.

Seeing Through the Smokescreen: A Call for Economic Literacy

The pattern is clear: when faced with inflation, the powerful institutions governing our economy, despite occasional admissions of corporate wrongdoing, quickly revert to the blame game: shifting scrutiny from capital to labor amidst 'greedflation'. This isn't an accident or an oversight; it's a deliberate, systemic strategy to frame worker demands as the primary inflationary threat, thereby diverting attention from corporate profiteering and maintaining wealth inequality. The "battle against inflation" becomes a convenient ideological weapon, used to justify policies that depress wages and consolidate power at the top.

Understanding this pattern is the first step towards challenging it. We must refuse to accept the simplistic narrative that workers are responsible for rising prices. Instead, we must demand accountability from the corporations who leverage their market power for excessive profits and from the institutions that enable them. It's time to shift the focus from BlameTheWorker to holding capital responsible, for a truly equitable and sustainable economy.

This analysis isn't just academic; it's urgent. It impacts your grocery bill, your rent, and your ability to earn a living wage. By recognizing the systemic bias, we empower ourselves to advocate for real solutions that prioritize people over profit, fostering a society where economic prosperity is shared, not hoarded.

Your Questions Answered: Unpacking Greedflation and the Blame Game