Political commentator Kim Iversen warned rising corporate profits combined with higher prices and empty shelves will create a consumer backlash against corporations and fundamentally change the way the people view the government.
Political commentator Kim Iversen last week on The Hill’s “Rising” warned of coming civil unrest if inflation and supply shortages continue while corporate profits soar.
Iversen and co-hosts Ryan Grim and Robby Soave skewered BlackRock CEO Robert Kapito for complaining of “an entitled generation that has never had to make sacrifices before.”
Iversen reported that U.S. corporate profits hit a record high in the fourth quarter of 2021, jumping 25%, even as the gross domestic product dropped 6.9%.
“So, what does this mean exactly?” she asked.
“It means,” she said, “inflation is good for big businesses, which upped their prices in response to supply and labor shortages and saw profit margins increase 25% to $2.94 trillion — the largest gain since 1976.”
She singled out the oil industry, saying, “We know that while gas prices are taking a toll on working people, 25 of the world’s biggest fossil fuel corporations are reaping in record profits … [and] oil giant BP, for example, has hit its highest profits in eight years.”
According to Iversen, corporations are using “the slight inflation that we did see in the beginning” as an excuse to hike prices over the long term.
“If you combine the supply-chain problems with the energy price increases with the corporate greed, you’ve basically explained all of the inflation that we’ve experienced.”
Iversen cited a March 29 MSNBC tweet that questioned why Americans are dissatisfied with this “booming economy:”
This trend isn’t sustainable, even for the interests of corporations, since a “middle class that is poor” won’t be able to buy any products, Iversen said.
As a solution, she suggested supporting Bernie Sanders’ new proposal to tax windfall profits from the pandemic at 95%.
Soave then reported on BlackRock CEO Kapito’s controversial comments about the economy.
Speaking last month at the Texas Independent Producers and Royalty Owners Association, Kapito said, “For the first time, this generation is going to go into a store and not be able to get what they want,” adding, “ … we have a very entitled generation that has never had to sacrifice.”
“I think this generation has sacrificed,” said the 32-year-old Soave. “I think there’s been plenty of sacrificing.”
While conceding his generation was never forced to serve in a war, he cited other burdens, such as student loan debt and the difficult economy his generation confronted upon graduating in the wake of the 2008 financial meltdown.
Kapito graduated from the Wharton School in 1979 and immediately joined a Boston investment firm. He earned an MBA from Harvard in 1983 and went on to co-found BlackRock in 1988.
According to corporate proxy reports obtained by salary.com, Kapito made $22,115,203 in 2020. Wallmine reports his estimated net worth at $303 million (other estimates, in the wake of the pandemic, are closer to $400 million).
Kapito, who turned 65 in February, has no published record on the web of military or civil service and would have been 15 years old when Richard Nixon announced the end of U.S. operations in Vietnam.
According to Blaze Media, Kapito’s warning came just days after Bloomberg economists advised Americans to consider budgeting an extra $5,200 this year — or $433 monthly — to prepare for historically high inflation.
Summing up the current economic trends, Iversen predicted:
“Look, the pitchforks are coming, guys. So either they do something about this, or the pitchforks are coming. If people can’t go to the grocery store and buy what they need, if they’re seeing like what this BlackRock executive is saying … if we walk into the stores and the shelves are empty and we’re not in a pandemic anymore and we can’t commute where we need to commute because gas prices are too high, this is going to change fundamentally the way the people view the government, and it’s not going to be good.”
Source: Children’s Health Defense