‘Greedy CEOs’ Are Using Inflation As Excuse To Raise Prices, NJ Senator Alleges

NEW JERSEY — A U.S. senator from New Jersey says inflation isn't the only cause of rising prices: you can also blame "greedy" corporate executives.

Speaking at a recent Senate Banking, Housing, and Urban Development Committee hearing, Sen. Bob Menendez alleged that “greedy CEOs” are “taking advantage of hardworking Americans” by using inflation as an excuse to raise prices on consumers.

Menendez pointed out that rapidly rising prices and supply chain shortages have squeezed household budgets, causing economic hardships for many families across the country. Read More: Electric Prices Skyrocket In New Jersey; Food Costs Also Spike

But it may not always be inflation that’s causing prices to rise, he alleged.

Holding up a transcript of Kimberly Clark’s recent earning call, the senator highlighted how the company’s CEO, Mike Hsu, recently told investors that the company took “decisive action to offset the impact of higher costs with significant pricing actions.”

From October 2021 to January 2022, the price of a 50-pack of Kimberly Clark N95 masks doubled from $23 to $57. The company also stated that they will resume stock buybacks when they have excess cash flow, Menendez said.

“I just gave one example, but too many companies are taking advantage of the headlines and jacking up prices and profits above and beyond any rise in raw material prices can justify, just so they can kick back more to wealthy shareholders through dividends and stock buybacks,” Menendez said.

• See related article: Report Blasts NJ Companies, Billionaires As 'Pandemic Profiteers'

IMMIGRATION REFORM

Still worried that a labor shortage is contributing to U.S. inflation? Immigrants are “ready and willing” to fill these jobs, Menendez said.

The senator pushed for immigration reform as one way to tackle the labor shortage being reported around the nation, including New Jersey.

“There are currently nearly 11 million job openings nationwide across low-wage and high-skill industries,” Menendez said. “Immigrants are ready and willing to fill these jobs.”

“Unfortunately, more than 1.6 million immigrants still have pending work permit applications before United States Citizenship and Immigration Services (USCIS), and more than eight million immigrants are stuck in the broader visa backlog,” he added.

According to Menendez, construction, transportation and warehousing, accommodation and hospitality, and personal services businesses are the industries facing the worst labor shortages. Between May and July 2021, job postings in these industries increased more than 65 percent, as compared to the same time period in 2021, the senator said.

• See related article: NJ Immigrants Own 47 Percent Of 'Main Street' Businesses
• See related article: NJ Is Getting Huge Economic Boost From Immigrants, Study Says

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