Groundwork’s Dr. Rakeen Mabud Reacts to Record-Breaking Q3 Corporate Profits

November 30, 2022

Groundwork’s Dr. Rakeen Mabud Reacts to Record-Breaking Q3 Corporate Profits

Today’s corporate profit data from the Bureau of Economic Analysis shows that nonfinancial corporations are continuing to register record profits amid decades-high inflation: Nonfinancial corporate profits were at an all-time high at $2.08 trillion. Dr. Rakeen Mabud, chief economist and managing director of policy and research at Groundwork Collaborative, responded with the following statement:

“Today’s record corporate profits mirror what we have been hearing on earnings call after earnings call: Corporations are gleefully reporting that their strategy to burden families with unnecessary price hikes is working.

“Powerful corporations in concentrated industries will keep prices sky high until lawmakers rein them in.”

What CEOs Have Been Saying

ExxonMobil, one of the largest energy companies in the U.S., is “in the process of executing a $30 billion … share repurchase program through 2023.” Their CEO put their strategy plainly, “I think in the short term, everyone will squeeze what they can.”

Food giant Pepsico, which reported $2.7 billion in profits in Q3, told investors, “I still think we’re capable of taking whatever pricing we need,” thanks to the food giant’s outsized market power.

Consumer goods corporation Johnson & Johnson, which made $4.4 billion in profits for Q3, declared “Our strategy is working” as their own supply chain issues ease and their price hikes take full effect.

Delta Airlines, after keeping fewer flights and constraining the supply of seats, posted its “highest quarterly revenue” in company history. The company earned $1.5 billion in the third quarter.