How Corporate Elites Manipulate Economies for Profit While Worsening the Cost-of-Living Crisis:
In recent years, the global corporate elites—those who own and control the largest multinational companies—have devised a systematic way to manipulate global economies, supply chains, and pricing structures to serve their interests. By artificially creating inflation, they have engineered one of the greatest wealth transfers in human history, further widening the gap between the top 1% and the struggling 99%. This exploitation of global financial systems has intensified the cost-of-living crisis, leaving the vast majority of people grappling with rising prices while corporate profits soar to unprecedented heights.

Here’s how this massive wealth transfer and inflation manipulation works:

Control of Supply Chains:
The global supply chains that deliver essential goods are largely controlled by a handful of multinational corporations. By strategically creating bottlenecks, slowing production, or limiting access to key resources, these corporate giants have artificially driven up the prices of food, fuel, electronics, and other critical items. This control over supply chains allows the elites to manipulate the availability of products, ensuring that demand exceeds supply—driving prices up and securing higher profits.

Manufactured Inflation for Profit: 
While inflation is often attributed to natural market forces, much of the inflation seen in recent years is deliberate and manufactured by corporate elites. By increasing prices under the guise of "supply chain disruptions" or "cost pressures," these corporations are inflating costs beyond necessity. This isn’t just opportunism during economic crises—it’s a calculated strategy to boost revenue. While the prices of goods and services rise for consumers, corporate balance sheets show record profits, and shareholder wealth grows exponentially.

Record Corporate Profits Amid Economic Crises: 
The COVID-19 pandemic, supply chain shocks, and geopolitical tensions have all contributed to an atmosphere ripe for inflation. During these periods of crisis, corporate elites have leveraged public uncertainty and government interventions to not only maintain but dramatically increase their profits. While the average person faced job losses, wage stagnation, and higher costs, corporations were posting record profits, particularly in sectors like technology, e-commerce, pharmaceuticals, energy, and consumer goods.

The Largest Transfer of Wealth in Human History: 
This engineered inflation has fuelled one of the largest wealth transfers ever recorded. While the cost of living for the average person has skyrocketed—making basic necessities like food, housing, and healthcare increasingly unaffordable—the global elite have amassed staggering fortunes. In 2020 alone, billionaires increased their wealth by over $5 trillion globally. This concentration of wealth at the top has come at the expense of the broader population, leading to further economic inequality. According to reports, while millions of people slipped into poverty during the pandemic, the wealth of the world's billionaires grew by over 60%, exemplifying how crises are weaponized for profit.

Widening the Wealth Gap Between the 1% and 99%: 
The impact of this wealth transfer has been devastating for the middle and working classes. As the price of goods and services continues to rise disproportionately to wages, the purchasing power of the average person diminishes. Meanwhile, the elite class—those in control of multinational corporations, investment firms, and tech monopolies—benefit from asset price inflation. Stocks, real estate, and other assets held by the wealthy have increased in value, further widening the wealth gap between the top 1% and the rest of the population.

The Role of Financialization:
Another key element of this wealth transfer has been the financialization of the global economy. Corporate elites, particularly in industries like finance, insurance, and real estate, have pushed for an economy based on speculation and financial manipulation rather than productive investment. This shift has resulted in massive profits for those at the top, while wages stagnate, and economic opportunities for the average worker dwindle. By prioritizing short-term shareholder value over long-term economic stability, corporate elites have fuelled stock buybacks, inflated asset bubbles, and funnelled profits to the few while leaving the majority in a precarious financial position.

Governments and Central Banks Enable the Wealth Transfer:
The policies of governments and central banks have played a significant role in facilitating this transfer of wealth. Low-interest rates, quantitative easing, and stimulus programs designed to prop up the economy have disproportionately benefited asset holders—the wealthy. While these policies were aimed at stabilizing markets and boosting economic activity, the reality is that they have primarily enriched the financial elite. As the value of assets like stocks, bonds, and real estate has soared, those with significant investments have seen their wealth skyrocket. Meanwhile, the 99%—who are less likely to hold significant assets—have faced the brunt of inflation, higher living costs, and stagnant wages.

Exacerbating Inequality and Social Unrest:
This manufactured inflation and massive transfer of wealth have not only created economic instability but have also led to growing social unrest. As the divide between the "haves" and the "have-nots" grows larger, frustration mounts. The elites, insulated by their wealth, continue to profit from a system rigged in their favour, while the average person faces worsening living standards. The economic inequality exacerbated by this wealth transfer is not just a matter of financial disparity; it poses a significant threat to the social fabric of nations worldwide, leading to political polarization, distrust in institutions, and increasing unrest.

Who Benefits From Engineered Inflation: 

How Inflation Benefits Large Corporations and Governments:
While the engineered inflation crisis has brought immense hardships to everyday consumers and the broader economy, it has also proven highly advantageous for large corporations and governments that operate on massive debts. These powerful entities have managed to turn inflation into a tool that works in their favour, allowing them to reduce the real value of their debts, increase their profits, and maintain control over the economic landscape. Here’s how this engineered inflation benefits large corporations and governments:

Reducing the Real Value of Debt:
For both governments and large corporations, inflation acts as a silent eraser for their massive debt burdens. When inflation rises, the real value of money decreases. This means that the debt held by these entities—often in the billions or even trillions—becomes worth less in real terms over time.

1. For Corporations: Major corporations that operate with significant leverage (borrowed money) benefit from inflation because it erodes the real value of their outstanding debt. If they took out loans at a fixed interest rate, inflation reduces the purchasing power of the money they owe, making it easier to repay their debts with future, less valuable dollars. Essentially, inflation allows corporations to borrow big today and pay back less valuable currency in the future, giving them more capital to invest or distribute to shareholders.
2. For Governments: Inflation is especially beneficial for heavily indebted governments. As inflation rises, tax revenues also increase because wages and prices go up. However, the government’s fixed debt obligations remain the same in nominal terms, meaning the real burden of national debt is reduced. This allows governments to manage and service their debts more easily without having to impose significant cuts or raise taxes drastically.

Boosting Corporate Profits

For large corporations, especially those that control essential goods and services, inflation presents an opportunity to boost profits. Corporations can raise prices under the guise of "cost increases" or "inflationary pressures," while their input costs (such as labor or raw materials) may not rise at the same rate.

• Increasing Profit Margins: By raising prices faster than costs are rising, corporations can increase their profit margins. For example, large multinational corporations often have long-term contracts with suppliers that lock in lower prices, allowing them to benefit from cost stability. However, they can still raise consumer prices significantly during periods of inflation, citing general economic trends. This practice results in higher revenues and profits, even when actual costs remain relatively stable.
• Maintaining Pricing Power: Large corporations, particularly in sectors like energy, pharmaceuticals, and food production, have substantial pricing power due to their control over supply chains and essential goods. During inflation, these companies can increase prices with little pushback, as consumers have no choice but to pay more for necessary items. This ability to maintain pricing power enables corporations to navigate inflationary periods while expanding their market share and profit margins.

Asset Inflation Benefits the Wealthy

For corporations and governments, inflation also leads to asset price inflation, where the value of stocks, real estate, and other assets rises significantly. Since large corporations and the wealthy elite hold vast amounts of assets, this inflationary trend works in their favor.

• Corporations and Wealthy Investors: As asset prices rise, the value of corporate holdings in real estate, stock buybacks, and other investments increases. Inflation inflates the value of financial markets, benefiting corporations and investors who see their portfolios grow even faster than the rate of inflation. This leads to increased wealth concentration among corporations and the wealthy, who benefit from rising asset prices while the majority struggle to afford basic necessities.
• Governments: For governments, rising asset prices result in higher capital gains tax revenues. As the value of investments and real estate increases, investors and corporations cash in on their gains, generating significant tax income for the government. Additionally, inflation-induced asset booms lead to greater consumption, further boosting government tax revenues.

Wage Stagnation Keeps Corporate Costs Low

While inflation might raise prices on goods and services, wages often lag behind. Large corporations benefit from this wage-price disconnect, as they can increase their revenues through higher consumer prices while keeping labor costs relatively low.

• Corporations Maintain Cost Efficiency: In many cases, wages for workers do not keep up with inflation, allowing corporations to maintain or even reduce their labor costs in real terms. This wage stagnation, combined with inflation, creates a profit-maximizing environment where corporations increase revenues while keeping the cost of labor stable or declining relative to inflation.
• Increased Productivity for Less: The pressure of rising living costs often forces workers to become more productive, as they take on additional jobs or work harder to meet rising expenses. This increase in productivity, combined with stagnant wages, further benefits large corporations, as they receive more output for the same or lower labor cost.

Inflation Allows Governments to Avoid Raising Taxes

For governments, inflation is a politically safer way to address public debt than raising taxes. Instead of directly increasing tax rates, which can provoke public backlash, inflation gradually erodes the value of debt while providing the government with more revenue through increased prices and wages.

• Rising Revenues Without New Taxes: As prices and wages rise due to inflation, tax revenues from sales taxes, income taxes, and other sources automatically increase without the need to introduce new taxes. Governments benefit from this “inflation tax” as they collect more revenue without having to push through unpopular fiscal policies.
• Managing Public Perception: Governments can downplay the real impact of inflation on the economy, framing it as a temporary phenomenon caused by external factors like global supply chain disruptions or market volatility. This allows them to continue borrowing and spending without facing immediate backlash for increasing taxes or cutting spending on public services.

Corporate Profiteering Exposed: 

Study Shows Profit Margins Soared by 30% Post-Pandemic:
A new Unite report reveals a 30% surge in UK corporate profit margins since the pandemic, with sectors like banking, energy, and retail leading the way. Electricity companies nearly tripled their margins, while the top four banks made £45 billion in 2022. As corporate profits rise, stagnant wages worsen the cost-of-living crisis. Unite calls for urgent action to shift the balance from shareholders to workers. 

• Largest Post-Pandemic Profit Study: Research from Unite examines nearly 17,000 UK companies, revealing a 30% increase in average profit margins since the pandemic.

• Key Sectors Profiting the Most: Banks, oil & gas, electricity generation, supermarkets, and shipping companies have seen some of the steepest profit jumps, with electricity companies tripling margins.

• Banks' Windfall Profits: The four major UK banks earned £45 billion in 2022, representing a 75% increase in profit margins compared to pre-pandemic figures.

• Cost-of-Living Crisis Deepens: While real wages remain stagnant, high corporate profits have significantly worsened the cost-of-living crisis, leaving workers struggling.

• Shareholders Reap the Rewards: FTSE 350 companies are paying 20% more to shareholders than before the pandemic, while investment in industries lags behind.

• Widespread Profiteering: The study reveals profiteering across companies of all sizes, with the median business increasing profits by 26% and nearly a third achieving profit margins above 10%.

• Unite’s Call for Change: Unite’s General Secretary Sharon Graham stresses the need to rebuild the trade union movement to counter corporate greed and demand a fairer share for workers.

The Largest Wealth Transfer in History: 

Implications for the Future:
This deliberate manipulation of inflation has resulted in the largest transfer of wealth in history, fueling resentment and pushing millions of people into financial hardship. The corporate elites—through their control of supply chains, pricing, and financial markets—have succeeded in concentrating unprecedented amounts of wealth and power in their hands. This wealth transfer has created an increasingly unequal world where the rich get richer while the vast majority struggle to make ends meet.

A Future of Greater Economic Divide:
As inflation continues to be manufactured and wealth flows upward, the divide between the wealthy 1% and the 99% will only grow. If left unchecked, this economic imbalance will further destabilize economies, erode trust in institutions, and fuel social and political tensions.

This engineered inflation, while immensely profitable for the elite, is disastrous for the average worker and consumer. It represents not only an economic crisis but also a moral one—where the wealthiest few exploit global crises to accumulate even more wealth, leaving the rest of the population to suffer under rising costs and diminishing opportunities.