Passing the Buck: Why We Pay More But Make Less Part 11: Who Profits?

Following the Money

We’ve shown you the costs. We’ve shown you they don’t add up. Now let’s follow the money.

Emma from Part 10 pays out $71,564 per year in shifted costs—92.9% of her gross income. That money doesn’t disappear. It goes somewhere.

Let’s trace every dollar Emma spends and see who collects it.

Emma’s $77,000: Where It Goes

Housing: $17,580/year

Emma’s landlord: Owns 140 apartment units across three buildings. He’s not a faceless corporation—he’s a local investor who bought the buildings in 2015 for $8.2 million (borrowed money). They’re now worth $14 million.

But he doesn’t keep all of Emma’s rent:

The mortgage holder: Wells Fargo

• Holds the commercial mortgage on Emma’s building
• Collecting interest on the $6.5 million loan
• Wells Fargo profit (2023): $19.1 billion

Property management company: Greystar Real Estate Partners

• Manages the property for the landlord
• Takes 8% of rent collected
• Emma’s rent generates $1,406/year for Greystar
• Greystar revenue (2023): $9.2 billion (private company)

Insurance on the building: State Farm

• Landlord’s insurance on property
• Emma’s rent pays part of this premium
• State Farm profit (2023): $6.7 billion

Emma’s rent gets split between her landlord, Wells Fargo, Greystar, and State Farm.

Transportation: $9,804/year

Car payment ($350/month = $4,200/year):

Honda Financial Services:

• Emma’s lender for her Civic
• 7.9% interest on $17,000 loan
• Will collect $4,096 in interest over the life of the loan
• Honda Financial Services (part of Honda Motor): Profit not separately reported, but Honda Motor profit (2023): $5.4 billion

Auto insurance ($180/month = $2,160/year):

Progressive Insurance:

• Emma’s auto insurer
• Progressive profit (2023): $5.5 billion
• CEO Tricia Griffith compensation (2023): $21.9 million

Gasoline ($160/month = $1,920/year):

Emma fills up at different stations, but the oil comes from the same companies:

ExxonMobil, Chevron, Shell, BP:

• Control most U.S. gasoline supply
• ExxonMobil profit (2023): $36.0 billion
• Chevron profit (2023): $21.4 billion
• ExxonMobil CEO Darren Woods compensation (2023): $34.5 million

Maintenance/repairs ($92/month = $1,104/year):

Emma uses a local mechanic, but parts come from:

AutoZone, O’Reilly Auto Parts, Advance Auto Parts:

• Control 60% of auto parts retail
• AutoZone profit (2023): $2.4 billion

Registration/fees ($15/month = $180/year):

• Goes to state government (one of the few things that does)

Parking ($20/month = $240/year):

• Hospital parking lot operator (contracted out)
• Likely SP+ or LAZ Parking (private companies)

Food: $5,400/year

Emma shops at Kroger (her only nearby option) and occasionally eats out.

Kroger:

• Emma spends ~$380/month = $4,560/year at Kroger
• Kroger profit (2023): $2.2 billion
• CEO Rodney McMullen compensation (2023): $19.1 million

The food Emma buys at Kroger came from:

Tyson Foods (chicken, beef, pork):

• Controls 20% of beef, 20% of chicken, 18% of pork
• Tyson profit (2023): $2.6 billion

General Mills (cereal, packaged goods):

• Profit (2023): $3.1 billion

Nestlé (coffee, frozen food, bottled water):

• Profit (2023): $10.2 billion (global)

Restaurants ($70/month = $840/year):

Emma goes to a mix of chains and local places, but chains dominate:

Yum! Brands (Taco Bell, KFC, Pizza Hut):

• Profit (2023): $1.6 billion

McDonald’s:

• Profit (2023): $8.5 billion
• CEO Chris Kempczinski compensation (2023): $20.2 million

Healthcare: $6,300/year

Employee premium contribution ($200/month = $2,400/year):

UnitedHealth Group:

• Emma’s health insurer (through her employer)
• UnitedHealth profit (2023): $22.4 billion
• CEO Andrew Witty compensation (2023): $23.5 million

Deductibles, co-pays, prescriptions ($150/month = $1,800/year):

When Emma actually uses healthcare:

Hospital charges: Her local hospital system

• Part of HCA Healthcare (operates 182 hospitals)
• HCA profit (2023): $5.2 billion
• CEO Sam Hazen compensation (2023): $25.7 million

Prescriptions: Filled at CVS

• CVS Health (owns Aetna insurance + pharmacy)
• CVS profit (2023): $8.3 billion
• CEO Karen Lynch compensation (2023): $21.3 million

Pharmaceutical companies:

• Pfizer profit (2023): $2.1 billion (down from COVID boom)
• Johnson & Johnson profit (2023): $15.6 billion

HSA contribution ($125/month = $1,500/year):

Managed by Fidelity or HealthEquity

• These companies charge fees on HSA accounts
• HealthEquity profit (2023): $274 million

Dental/vision ($50/month = $600/year):

Delta Dental or VSP Vision Care (two companies control 70% of dental/vision insurance)

• Both private companies, profits not disclosed

Student Loans: $4,080/year

Federal student loans serviced by:

Navient, Nelnet, or MOHELA:

• Government contracts to service federal loans
• Companies profit from servicing fees
• Nelnet revenue (2023): $1.4 billion (includes other services)

Emma pays the government, but private companies profit from servicing the loans.

Phone & Internet: $1,968/year

Internet ($89/month = $1,068/year):

Comcast:

• Emma’s only option
• Comcast profit (2023): $15.4 billion
• CEO Brian Roberts compensation (2023): $32.5 million

Cell phone ($75/month = $900/year):

T-Mobile:

• T-Mobile profit (2023): $13.0 billion
• CEO Mike Sievert compensation (2023): $54.4 million

Utilities: $1,920/year

Electric ($95/month = $1,140/year):

Duke Energy (Emma’s electric utility):

• Regulated utility, but still profits
• Duke Energy profit (2023): $3.9 billion
• CEO Lynn Good compensation (2023): $16.2 million

Water/Sewer ($65/month = $780/year):

• Municipal utility (government-run)
• One of the few services that hasn’t been privatized

Banking & Credit: $1,596/year

Credit card interest ($63/month = $756/year):

Chase (JPMorgan Chase):

• Emma’s credit card issuer
• JPMorgan Chase profit (2023): $49.6 billion
• CEO Jamie Dimon compensation (2023): $34.5 million

Bank account fees ($12/month = $144/year):

Wells Fargo:

• Emma’s bank (same bank that holds her landlord’s mortgage)
• Wells Fargo profit (2023): $19.1 billion

ATM fees ($6/month = $72/year):

• Split between Wells Fargo and whatever bank owns the ATM she uses

Monthly Fees: $996/year

Rent payment convenience fee ($35/month = $420/year):

RealPage or Yardi (property management software):

• Processes online rent payments
• Takes a cut of the “convenience fee”
• RealPage revenue (2023): $1.1 billion (acquired by Thoma Bravo private equity)

Utility payment fees ($8/month = $96/year):

Speedpay or CheckFreePay (payment processors):

• Owned by larger financial companies

Streaming services ($25/month = $300/year):

Netflix:

• Netflix profit (2023): $5.4 billion

Disney+ (owned by Disney):

• Disney profit (2023): $2.4 billion

Various other fees ($15/month = $180/year):

• Mix of companies collecting small fees

The Pattern: It’s the Same Companies

Look at who shows up repeatedly in Emma’s expenses:

Banks Everywhere:

• JPMorgan Chase: Credit card, mortgage loans, student loan servicing
• Wells Fargo: Banking, auto loans, commercial mortgages, credit cards
• Bank of America: Similar reach across all categories

These three banks alone appear in:

• Banking fees (Part 3)
• Credit card interest (Part 4)
• Auto financing (Part 5)
• Mortgages on rental properties
• Student loan servicing

Same Investors Own Everything:

Let’s look at who owns these companies:

Top shareholders of UnitedHealth (healthcare):

1. Vanguard Group: 8.7%
2. BlackRock: 7.3%
3. State Street: 4.2%

Top shareholders of JPMorgan Chase (banking):

1. Vanguard Group: 8.0%
2. BlackRock: 6.2%
3. State Street: 4.1%

Top shareholders of Comcast (internet/cable):

1. Vanguard Group: 8.2%
2. BlackRock: 6.8%
3. State Street: 3.4%

Top shareholders of Walmart (retail/grocery):

1. Walton Family: 50.9%
2. Vanguard Group: 5.0%
3. BlackRock: 3.1%

Top shareholders of ExxonMobil (oil/gas):

1. Vanguard Group: 8.2%
2. BlackRock: 6.7%
3. State Street: 5.1%

Same three institutional investors—Vanguard, BlackRock, and State Street—are the top shareholders of virtually every major corporation in America.

When Emma pays:

• Health insurance → profits go to UnitedHealth → shares owned by Vanguard, BlackRock, State Street
• Credit card interest → profits go to Chase → shares owned by Vanguard, BlackRock, State Street
• Internet bill → profits go to Comcast → shares owned by Vanguard, BlackRock, State Street
• Gas → profits go to Exxon → shares owned by Vanguard, BlackRock, State Street

The same investors profit from every dollar Emma spends.

Who Owns Vanguard, BlackRock, and State Street?

Vanguard:

• Unique structure: owned by its funds
• Which are owned by the people invested in those funds
• But the top 1% own 54% of all stocks
• The top 10% own 89% of all stocks
• So Vanguard represents primarily wealthy investors

BlackRock:

• Publicly traded
• Top shareholders: Vanguard, various institutions
• CEO Larry Fink: $27.4 million (2023)
• BlackRock manages $9.1 trillion in assets

State Street:

• Publicly traded
• Top shareholders: Vanguard, BlackRock (they own each other)
• Manages $4.1 trillion in assets

Translation: The wealthiest 10% of Americans own the investment companies that own the corporations that collect Emma’s money.

The Total Profit from Emma

Let’s add up the profits from Emma’s spending:

Direct payments to major corporations:

• Healthcare: UnitedHealth gets portion of $2,400 premium
• Credit cards: Chase gets $756 in interest
• Internet: Comcast gets $1,068
• Cell phone: T-Mobile gets $900
• Auto insurance: Progressive gets $2,160
• Electric: Duke Energy gets $1,140
• Food: Kroger gets $4,560
• Gas: Exxon/Chevron get $1,920
• Student loans: Servicer gets fees on $4,080

Total direct to major corporations: ~$15,000/year from Emma

Indirect payments (Emma’s rent pays landlord’s mortgage to Wells Fargo, etc.):

• Add another ~$3,000/year

Total flowing to major corporations: ~$18,000/year

That’s 23% of Emma’s gross income going directly to major corporations.

And those corporations are owned by investment firms, which are owned by the wealthiest Americans.

The Scale: National Numbers

Emma is one person. Let’s scale to the nation:

160 million workers in the U.S.

If each worker’s spending flows similarly:

• $18,000 per worker to major corporations
• $2.88 trillion annually from workers to major corporations

Where does that money go?

Corporate Profits (2023):

Total S&P 500 profits: $1.8 trillion

Distributed to shareholders:

• Dividends: $565 billion
• Stock buybacks: $795 billion
• Total returned to shareholders: $1.36 trillion

Who receives those dividends and buyback gains?

Top 10% of households own 89% of stocks. Top 1% own 54% of stocks.

So:

• Top 1% receive: $734 billion (54% of $1.36T)
• Next 9% receive: $476 billion (35% of $1.36T)
• Bottom 90% receive: $150 billion (11% of $1.36T)

The money flows from the 90% to the 10%.

Emma and 160 million workers pay for healthcare, food, transportation, internet—the corporations collect it and return it to wealthy shareholders.

The Individual Winners

Let’s name specific people who profit from Emma’s shifted costs:

Jamie Dimon (JPMorgan Chase CEO):

• 2023 compensation: $34.5 million
• Owns $1.8 billion in Chase stock
• Emma’s credit card interest contributes to Chase’s $49.6 billion profit
• Which increases the stock value Dimon owns

Brian Roberts (Comcast CEO):

• 2023 compensation: $32.5 million
• Family owns 33% of Comcast (worth ~$34 billion)
• Emma’s $1,068/year internet bill contributes to Comcast’s $15.4 billion profit
• Which flows to the Roberts family

Darren Woods (ExxonMobil CEO):

• 2023 compensation: $34.5 million
• Emma’s $1,920/year in gas purchases contributes to Exxon’s $36 billion profit

Andrew Witty (UnitedHealth CEO):

• 2023 compensation: $23.5 million
• Emma’s $2,400/year in premiums contributes to UnitedHealth’s $22.4 billion profit

The Walton Family (Walmart owners):

• Own 50.9% of Walmart stock
• Family wealth: ~$250 billion
• Emma shops at Kroger, but Walmart’s grocery monopoly sets prices
• Walmart profit (2023): $15.3 billion
• Waltons collect: ~$7.8 billion in dividends (their share)

Larry Fink (BlackRock CEO):

• 2023 compensation: $27.4 million
• BlackRock manages $9.1 trillion
• Owns major stakes in every company Emma pays
• Collects management fees on all of it

The Interlocking Directorates

It’s not just common shareholders. The same people sit on multiple boards:

Example: Lloyd Blankfein

• Former CEO of Goldman Sachs
• Board member of:
  • Verizon (telecom)
  • Williams Companies (energy)
  • Harvard Corporation

Example: Mary Barra

• CEO of General Motors
• Board member of:
  • Disney
  • Duke University

Example: Susan Wojcicki (former YouTube CEO)

• Board member of:
  • Salesforce
  • Multiple private companies

These interlocking relationships create a network where corporate leaders protect each other’s interests.

The Lobbying Machine

These same companies spend hundreds of millions lobbying to protect their profit models:

2023 Lobbying spending (companies collecting Emma’s money):

• Comcast: $15.7 million
• AT&T: $13.1 million
• Pharmaceutical companies (total): $374 million
• Insurance companies (total): $175 million
• Oil and gas (total): $124 million
• Banks and financial services (total): $630 million

Total lobbying by companies in our series: Over $1.3 billion

They spend this money to:

• Block price controls on drugs
• Block net neutrality
• Block public option healthcare
• Block banking regulations
• Block antitrust enforcement
• Block municipal broadband
• Block rent control
• Block everything that would reduce their profits

They’re using Emma’s money to lobby against Emma’s interests.

The Political Donations

2024 election cycle (so far):

Corporate PAC donations:

• Finance/Insurance/Real Estate: $478 million
• Health: $242 million
• Communications/Electronics: $189 million
• Energy/Natural Resources: $156 million

Distributed:

• 51% to Republicans
• 49% to Democrats

They fund both sides.

Why? Because regardless of who wins, they’ve already paid for access.

The Revolving Door

Corporate executives and lobbyists become regulators. Regulators become corporate executives.

Examples:

Ajit Pai:

• Verizon lawyer → FCC Chairman (Trump appointment) → Repealed net neutrality → Left FCC → Joined private equity firm

Tom Wheeler:

• Cable and wireless lobbyist → FCC Chairman (Obama appointment) → Implemented net neutrality → Left FCC → Joined Brookings Institution

Timothy Geithner:

• Treasury Secretary (Obama) → President of Warburg Pincus (private equity)

Steven Mnuchin:

• Goldman Sachs executive → Treasury Secretary (Trump)

The pattern: Work for industry → Regulate industry → Return to industry

Or: Regulate industry favorably → Get rewarded with industry job

Following Emma’s Dollar

Let’s follow one specific dollar Emma spends:

Emma pays $1 to Comcast for internet

Comcast keeps: $0.65 (after paying for actual infrastructure and operations)

Comcast distributes:

• Dividends to shareholders: $0.35
• Stock buybacks: $0.30 (boosts stock price for shareholders)

Those dividends go to:

• Vanguard: $0.029 (8.2% ownership)
• BlackRock: $0.024 (6.8% ownership)
• State Street: $0.012 (3.4% ownership)
• Other investors: $0.285

Vanguard, BlackRock, State Street distribute to their investors:

• Top 1% get: ~$0.35
• Next 9% get: ~$0.23
• Bottom 90% get: ~$0.07

Emma’s dollar flowed from her paycheck to Comcast to investment firms to wealthy investors.

She worked for it. They collected it.

The System Revealed

Here’s what we’ve shown:

1. Emma pays $71,564/year in shifted costs (92.9% of gross income)
2. That money flows to major corporations with monopoly or oligopoly power
3. Those corporations are owned by the same institutional investors (Vanguard, BlackRock, State Street)
4. Those investors represent primarily the wealthiest 10% (who own 89% of stocks)
5. Corporate profits flow to shareholders ($1.36 trillion in 2023)
6. The wealthy receive the majority (top 1% get 54%)
7. Those same corporations lobby to protect their profits ($1.3 billion in lobbying)
8. And fund both political parties to ensure access regardless of who wins
9. While executives rotate between industry and government (the revolving door)

It’s a closed loop:

• Shift costs to workers
• Collect the money as corporate profit
• Distribute to wealthy shareholders
• Use portion of profit to lobby for policies that allow more cost-shifting
• Fund politicians who protect the system
• Place executives in regulatory positions
• Extract more

And Emma—making $77,000/year, above median income, doing everything right—has $253/month left after all the shifted costs.

What’s Next

We’ve followed the money. We’ve shown you who profits. We’ve named names.

Now, in Part 12, we’re going to show you why this system persists: The Bipartisan Consensus.

Both political parties protect this wealth transfer. Democrats and Republicans both take corporate money. Both support policies that allow cost-shifting. Both protect monopolies.

We’ll show you the votes, the donations, the rhetoric versus the reality.

Because you can’t fix a problem until you understand why it exists.

And the reason it exists is simple: It’s profitable for the people who fund politics.

Passing the Buck: Why We Pay More But Make Less is a 15-part series examining how corporations and government systematically shifted costs onto working Americans—while wages stagnated and benefits disappeared.