The Department of Justice announced Thursday that it will begin investigating companies for earning what it believes to be excessive profits amid surging inflation and ongoing supply chain issues.
In a press release, the department said its antitrust division would begin to “deter, detect and prosecute those who would exploit supply chain disruptions” to earn what the department calls “illicit profit.” The goal of the initiative, according to the department, is to prevent companies from “overcharging customers under the guise of supply chain disruptions.”
The problem, of course, is that the supply chain disruptions are quite real—and inflation across the economy is the result of both those large-scale issues and government actions, including last year’s $1.9 trillion stimulus bill and protectionist policies. To the extent that private companies are raising prices, those things are the likely culprits—and higher prices are the market’s way of allocating scarce goods most efficiently, not evidence of price gouging.
reason.com/2022/02/17/doj-fbi-will-police-companies-for-illicit-profits/