White House blames corporations for ‘shrinkflation
President Biden Takes on Shrinkflation
President Joe Biden has recently introduced the term “shrinkflation” to address rising prices and counter Republican criticism of his economic management. In a video ad released by his team, Biden expressed his frustration with companies reducing the size or quantity of goods without raising the price, a practice known as shrinkflation.
“While you were Super Bowl shopping, did you notice smaller-than-usual products where the price stays the same? Folks are calling it Shrinkflation and it means companies are giving you less for every dollar you spend. I’m calling on the big consumer brands to put a stop to it.”
Director of the George Washington University School of Media and Public Affairs, Peter Loge, believes that Biden’s focus on basic grocery store staples and the changes people experience while shopping could be more effective in addressing voter frustrations than simply highlighting positive macroeconomic trends. Loge suggests that Biden is trying to show voters that he understands their concerns and wants to call out companies taking advantage of them.
“The economy is getting better, but people don’t experience the economy. They buy groceries. I think what the president is trying to do is to tell voters, ‘You know, I’m with you on this. I know how this feels, and I can’t change the law, but maybe together, we can call out these companies for trying to take advantage of you.'”
Biden’s messaging on shrinkflation aligns with the Left’s argument that inflation is caused by corporate greed rather than government spending. Senators Elizabeth Warren and Bernie Sanders have also accused companies of raising prices to increase profits. Warren even released her own video discussing shrinkflation in popular products like Doritos, Oreos, and toilet paper.
However, Republicans and those on the Right dismiss Biden’s attacks on shrinkflation, attributing the higher prices to excessive government spending and Federal Reserve monetary policy during the pandemic. Ryan Young, senior economist at the Competitive Enterprise Institute, argues that politicians should face public scrutiny for the inflation rather than blaming corporate greed.
Shrinkflation is a factor in inflation statistics, such as the consumer price index. To address shrinkflation, Young suggests that the Biden administration needs to control inflation by reducing spending and that the Federal Reserve should exercise restraint during economic downturns.
Biden himself mentioned shrinkflation during an event in Las Vegas, pointing out that Snickers bars have shrunk in size by about 10% while the price remains the same. The Washington Examiner reached out to Mars, Inc., the maker of Snickers, for comment but did not receive a response.
During a news briefing, White House press secretary Karine Jean-Pierre was asked about Biden’s messaging on shrinkflation and whether the president takes any responsibility for high inflation. Jean-Pierre acknowledged that prices are still a concern for Americans but highlighted that prices for certain items like eggs, milk, and seafood have actually decreased compared to a year ago. She emphasized Biden’s call for corporations to pass their savings on to hard-working Americans.
Source: The Washington Examiner
How has inflation affected consumer prices in recent months, and what industries have been particularly impacted?
Lation comes at a time when consumer prices are rising at the fastest pace in over a decade. Inflation increased by 5.4% in June 2021 compared to the previous year, with prices for used cars, gasoline, and food leading the surge. The President’s focus on shrinkflation shows his awareness of the impact rising prices have on everyday Americans.
Shrinkflation is not a new phenomenon. It has been a strategy employed by companies for years as a way to maintain profit margins while keeping prices seemingly stable. By reducing the size or quantity of a product while keeping the price the same, companies can offset increasing production costs or other economic pressures.
Critics argue that shrinkflation is a form of deception, as it effectively results in hidden price increases for consumers. For example, a bag of chips that used to contain 10 ounces may now only have 9 ounces, yet the price remains unchanged. This practice undermines the purchasing power of consumers, as they are unknowingly paying more for less.
President Biden’s call on big consumer brands to put a stop to shrinkflation is a clear message that he stands with the American people against unfair business practices. By addressing this issue, Biden aims to restore consumer confidence and hold companies accountable for their actions.
However, it is important to note that while Biden can advocate for change, he cannot directly legislate against shrinkflation. The power to regulate business practices lies with Congress and other regulatory bodies. Nevertheless, by bringing attention to the issue, Biden is using the power of the presidency to amplify the voices of frustrated consumers.
The impact of Biden’s stance on shrinkflation remains to be seen. Consumer advocacy groups have long been critical of shrinkflation, but it is yet to gain significant attention in the political arena. By initiating this conversation, Biden is signaling his pro-consumer approach and highlighting his commitment to addressing the economic concerns of everyday Americans.
In conclusion, President Biden’s focus on shrinkflation is a strategic move to address rising prices and demonstrate his understanding of voter frustrations. By calling on big consumer brands to stop this practice, Biden aims to empower consumers and ensure transparency in pricing. While the President’s messaging on shrinkflation may not result in immediate legislative changes, it sends a strong signal that he is willing to tackle issues that directly impact the lives of American citizens.
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