The war between Russia and Ukraine has often been suggested as one of the reasons for the Cost of Living Crisis as the price of fuel and your shopping basket skyrocketed so we bought less shopping and skipped meals as well as restricting the use of our heating and drove less to conserve petrol.
As we were using less of their products, you would suppose that since 2022 when Russia invaded, the poor companies and supermarkets would be struggling due to selling less but then you would suppose wrong because even if we did, they were not struggling despite an average rise of 19% price inflation.
Last year alone, Tesco's profits rose by 160% to make a £2.3 billion with £701m posted by Sainsbury's and £1.1 bn for Asda.
As for the energy companies, pointing at Russia's actions, in a time when hard-pressed Britons struggled to heat their homes or pay their bills with Gas and electricity prices rising by 19% over the past year, Shell made a profit of £19bn , Equinor £11bn, ExxonMobil £36bn and BP £12bn.
It’s difficult to hear about massive profits at these companies when we know so many households are struggling to pay for the basics after huge increases to their shopping and energy bills and the Citizens Advice, Beureau published details of 5.3 million people currently households that are in debt to their energy supplier and 800,000 people went without gas or electricity for more than 24 hours because they couldn’t afford to top up their prepayment meter.
The question should be asked then if the cost of supply for the Supermarkets and Utility Companies was more expensive, and users restricted how much they used them, how did they manage to rake up such massive profits from something that cost them more and they sold less of it?
There you have it then and it isn't a failure of Capitalism, it shows that Capitalism is in full working order where the richer get richer and if you cant afford it then you have to go without which is fine for some things but not quite so good when the things you have to miss is as important as food and heating.
Wednesday, 25 September 2024
Capitalism Working for Some More Than Others
Subscribe to:
Post Comments (Atom)
1 comment:
your understanding and explanation of economic topics is childishly wrong
Post a Comment