I'm sure this will work out fine.
DOJ, FBI Will Investigate Companies for 'Illicit Profits'
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.
"The DOJ and FBI would rather launch a global investigation of 'illicit' supply chain profiteering than acknowledge the obvious and inevitable result when unprecedented fiscal and monetary stimulus combines with decades of protectionism and regulatory sclerosis," says Scott Lincicome, director of general economics and trade policy for the Cato Institute, a libertarian think tank.
But this announcement from the DOJ is more than just a fishing expedition. It suggests that the mighty law enforcement apparatuses of the federal government are following Sens. Elizabeth Warren (D–Mass.) and Bernie Sanders (I–Vt.) into the fantasy world where the profit motive is responsible for inflation. That cockamamie conspiracy theory becomes less funny when the FBI is empowered to charge companies for "illicit profits" as they try to keep shelves stocked in an environment of scarcity.