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For Immediate Release
February, 12 2025, 11:59am EDT
Contact:
press@groundworkcollaborative.org
Groundwork’s Jacquez on the January CPI Report: “Prices are rising and yet the Trump Administration has ‘no timeline’ and no plan”
Today, the January Consumer Price Index showed that inflation rose to 3.0% year-over-year, with prices rising by 0.5% in January – the highest month-over-month increase since August 2023. Groundwork’s Chief of Policy and Advocacy Alex Jacquez released the following statement reacting to the latest inflation data:
“Prices are rising and yet the Trump Administration has ‘no timeline’ and no plan to lower costs for families. Americans are taking notice, with consumer sentiment at its lowest since July, and consumers expect inflation to go even higher.
“Instead of bringing down prices, Trump and his billionaire buddy Elon Musk are laser-focused on shutting down consumer protection enforcers like CFPB, which has returned more than $20 billion to defrauded Americans, and trying to defund Social Security and Medicare. Targeting people’s health care and exposing them to financial scams does nothing to lower the cost of living.”
Email press@groundworkcollaborative.org to speak with one of Groundwork’s experts about today’s CPI report and the high cost of living.
The Groundwork Collaborative is dedicated to advancing a coherent and persuasive progressive economic worldview and narrative capable of delivering meaningful opportunity and prosperity for everyone. Our work is driven by a core guiding principle: We are the economy. Groundwork Collaborative envisions an economic system that produces strong, broadly shared prosperity and power for all people, not just a wealthy few.
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'This Absurdity Must End,' Sanders Says of Study Highlighting Healthcare Industry Greed
"Unfortunately, instead of working with Congress on this real issue, Trump and Musk have launched an immoral and unconstitutional attack on the Department of Health and Human Services."
Feb 12, 2025
Responding to a new study showing that leading health services companies made $2.7 trillion in profits and spent $2.6 trillion on stock buybacks and dividends in the years 2001-22, U.S. Sen. Bernie Sanders on Wednesday vowed to continue "to take on the unprecedented level of corporate greed in our healthcare system."
The study, published this week by the Journal of the American Medical Association, noted the "growing concern that a large proportion of U.S. healthcare spending appears to be directed to corporate shareholders rather than enhancing affordable access, improving quality of care, or advancing research and development."
Sanders (I-Vt.)—the ranking member of the Senate Committee on Health, Education, Labor, and Pensions—said in a statement that "it is absolutely unacceptable that since 2001, the top healthcare companies in America spent 95% of their profits, $2.6 trillion, not to make Americans healthy, but to make their CEOs and stockholders obscenely rich."
The top health care companies in America spent 95% of their profits to make their CEOs & stockholders obscenely rich. How many Americans would be alive today if those companies spent $2.6 trillion on disease prevention and primary care, instead of stock buybacks and dividends?
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— Senator Bernie Sanders (@sanders.senate.gov) February 12, 2025 at 11:21 AM
"The function of a rational healthcare system is to guarantee quality healthcare to all, not huge payouts for stockholders and executives in the drug and insurance industries," Sanders asserted. "None of this money was used to search for new treatments and cures, to lower prices, or to improve patient care. That has got to change."
The senator continued:
This study confirms that the greatest waste, fraud, and abuse in this country is corporate greed. Unfortunately, instead of working with Congress on this real issue, [U.S. President Donald] Trump and [Department of Government Efficiency leader Elon] Musk have launched an immoral and unconstitutional attack on the Department of Health and Human Services.
Instead of taking on the greed of the pharmaceutical industry, Trump and Musk are taking away AIDS treatment from poor people.
Instead of taking on the for-profit insurance industry, Trump and Musk are making it harder for working-class Americans to get the healthcare they need through Medicaid and community health centers.
"This absurdity must end," Sanders stressed. "As the ranking member of the Senate Health, Education, Labor, and Pensions Committee, I will do everything I can to take on the unprecedented level of corporate greed in our healthcare system."
Last month, Sanders—who twice sought the Democratic presidential nomination on a platform centering Medicare for All—unveiled a nine-point "Make America Healthy Again" plan in response to Health and Human Services secretary nominee Robert F. Kennedy Jr.'s variation on Trump's "Make America Great Again" slogan.
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GOP Proposes $4.5 Trillion Tax Giveaway to the Rich While 'Ransacking' Food Stamps and Medicaid
"House Republican leadership put a giant bullseye on Medicaid, with the intent to strip Americans of their healthcare benefits to pay for tax cuts for billionaires and big corporations."
Feb 12, 2025
House Republicans unveiled a draft budget resolution on Wednesday that calls for $4.5 trillion in tax breaks that would disproportionately benefit the wealthy while proposing $2 trillion in cuts to Medicaid, federal nutrition assistance, and other programs.
Lawmakers are set to mark up the House GOP's budget blueprint on Thursday as Republicans look to craft a sprawling reconciliation bill that can pass both chambers of Congress with a simple-majority vote. Last week, Senate Republicans released their own budget resolution that proposed significant cuts to Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and other spending that benefits working-class families.
"Instead of tackling rising prices and delivering relief for American families, House Republicans are charging ahead with trillions of dollars in deeply unpopular tax breaks for billionaires like Donald Trump and Elon Musk," Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, said Wednesday in response to the House GOP resolution.
"And, they're paying for their billionaire handouts by ransacking healthcare, food assistance, and other vital programs that American workers and families rely on," Jacquez added.
The new resolution released by the Republican-controlled House Budget Committee specifically calls on the chamber's energy and commerce panel to "submit changes in laws within its jurisdiction to reduce the deficit by not less than" $880 billion over the next decade. The House Energy and Commerce Committee has jurisdiction over Medicaid.
The measure also instructs the House Committee on Agriculture, which has jurisdiction over SNAP, to cut no less than $230 billion in spending between fiscal years 2025 and 2034.
"They wanna do a giant tax cut that disproportionately helps the rich while taking away people's health insurance and food while still adding trillions to the debt," Bobby Kogan, a former Senate Budget Committee staffer who is now senior director of federal budget policy at the Center for American Progress, wrote in response to the resolution.
Overall, the House GOP's budget resolution calls for $2 trillion in cuts to "mandatory spending" over the next decade, taking aim at a category that includes Medicaid, Medicare, Social Security, and SNAP. While Social Security benefits cannot be cut through the reconciliation process, Supplemental Security Income (SSI) can.
Congressional Republicans have outlined a number of ways they could slash Medicaid and SNAP, including punitive new work requirements that analysts say would strip benefits from tens of millions of low-income people.
But Families USA executive director Anthony Wright said Wednesday that "we don't need to know the mechanisms of how Medicaid would be cut to know the impact would be catastrophic: The sheer size of the proposed cuts means millions of Americans losing coverage, hospitals and clinics plunged into budget shortfalls, and healthcare services we all depend on being eliminated."
"This budget resolution is a five-alarm fire alert for our healthcare," said Wright. "House Republican leadership put a giant bullseye on Medicaid, with the intent to strip Americans of their healthcare benefits to pay for tax cuts for billionaires and big corporations."
Kobie Christian, a spokesperson for the progressive coalition Unrig Our Economy, issued a similarly scathing statement on Wednesday, arguing that House Republicans "showed us that what they value is more tax breaks for greedy billionaires and giant corporations with everyday people paying the price."
"At a time when everyday Americans face increasingly higher prices, Speaker Johnson and his stooges want to write billionaires a check and force working-class people to foot the bill for their outrageous tax breaks for corporations and the ultra-wealthy," said Christian. "Everyday Americans will not stand for these games—it's time for Republicans in Congress to end their campaign that puts the ultra-wealthy first on the backs of the rest of us."
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Trump FTC Urged to Probe Egg Giants Reaping 'Dramatic' Profits by Keeping Prices High
"Evidence indicates that by not increasing their supply, the five dominant egg firms are forcing prices to stay high while reporting dramatic profit increases and level sales," according to the group Farm Action.
Feb 12, 2025
An advocacy group dedicated to fighting corporate agriculture monopolies on Wednesday urged federal antitrust enforcers to take action against egg producers that the group accuses of taking advantage of the bird flu crisis in order to raise prices, inflate their profits, and consolidate their market power.
What's more, the slow recovery of "flock size"—the total number of egg-laying hens—"despite historically high prices, further suggests coordinated efforts to restrict supply and sustain inflated prices" that warrants investigation, according to a letter sent by Farm Action president Angela Huffman to Federal Trade Commission Chair Andrew Ferguson and Acting Assistant Attorney General Omeed Assefi, who has been tapped to temporarily lead the DOJ antitrust division.
The letter, which invokes the behavior of "dominant egg producers," largely provides data on one company, Cal-Maine Foods, the biggest producer and marketer of shell eggs in the country.
Separately, Democratic voices are urging the Trump administration to take action around corporate conduct as it relates to food prices. FTC Commissioner Alvaro Bedoya, a Biden appointee, has also urged Ferguson to open an investigation into egg production and marketing practices—pointing to a 2023 request from Farm Action to the FTC to investigate potential antitrust violations in the egg industry.
And last week Sen. Elizabeth Warren (D-Mass.) wrote that she had sent President Donald Trump a list of ways he "can use his executive authority to tackle high food costs by focusing on corporate profiteering."
Egg prices have risen starting in 2022, coinciding with the arrival of bird flu in the United States, and are likely to keep rising in 2025.
The wholesale price of "Grade-A, Large, White, Shell Eggs" rose from $0.50-$1.30 per dozen in 2021 to $1.50-$5.00 per dozen in 2022, and then eased in 2023 before climbing up again in 2024. As of January 2025, the national index of weekly prices for that same type of eggs was up to $6.00-$8.00 per dozen, according to Farm Action.
"The previous all-time high [for wholesale prices] was late December 2022 heading into Christmas, when we touched $5.46 per dozen," Ryan Hojnowski, a market reporter at Expana, wrote in an e-mail to CNBC. "Of course we have blown way past that this time."
Retail prices have also increased. Retail prices for large, Grade-A eggs reached an average of $4.25 per dozen in December 2022 after never reaching above $3 a dozen in the 2010s. Retail prices declined in 2023 and then rose again throughout 2024, reaching $4.15 per dozen in December of last year.
Farm Action argues that while bird flu has been cited as the main driver for rising egg prices, its actual impact on production has been minimal. According to the letter, bird flu has forced the culling of roughly 115 million egg-laying chickens, but the impact of these losses on the total size of the U.S. supply of egg-laying flock has been "relatively modest." Huffman wrote that this culling has caused egg production to drop from 8.1 billion eggs per month in 2021 to 7.75 billion eggs per month at the end of 2024.
But crucially, according to the letter, per capita production of eggs has not been below per capita consumption of eggs in any year between 2022 and the present—while the total value of egg production has risen from $8.8 billion in 2021 to $17.9 billion in 2023.
Cal-Maine specifically has seen its profits soar. The company tallied gross profits of $179.6 million in fiscal year 2020, but the producer reported $1.2 billion and $541.6 million in gross profits in fiscal year 2023 and 2024, respectively, according to the letter. Between fiscal year 2020 and fiscal year 2024, sale levels have remained fairly consistent, wrote Huffman.
"Evidence indicates that by not increasing their supply, the five dominant egg firms are forcing prices to stay high while reporting dramatic profit increases and level sales. These same firms are then using their increased profits to acquire their competition, further driving market consolidation instead of investing in replenishing or expanding their flocks," Farm Action wrote in a statement on Wednesday.
As evidence, they cite a number of mergers that took place in the industry in 2023, and point to the fact that the top five egg producers' share of the "U.S. layer hen flock" increased from 37% to 46% between 2023 and 2025.
"There appears to be a remarkable unwillingness among large egg producers to invest in the internal reconstruction or expansion of their egg-laying flocks in response to persistently high prices," wrote Huffman, which she contrasts with the quicker flock recovery that took place during the first bird flu outbreak in 2014-2015.
The "lagging recovery" and "the fact that egg producers are showing unusual discipline in their pricing and output decisions" indicates that market forces are not "operating as they should be." The letter suggests a few factors that may contribute to the lack of competition.
The group is urging the two agencies to launch investigations, specifically encouraging the FTC to launch an investigation into pricing and production practices of dominant egg producers and their hatchery suppliers to make sure the market is "truly free and fair."
This is far from the first time that the food and grocery industry has been accused of inappropriately raising prices.
In August 2024, a top executive at the supermarket chain Kroger even admitted under questioning from a Federal Trade Commission attorney that the grocery chain raised its egg and milk prices above the rate of inflation.
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