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June 10, 2022

Bidenflation Brings Shrinkflation

Companies are tackling 40-year-high inflation by trimming the size or quantity of the products they sell.

It’s an economic phenomenon not seen at this level in the U.S. in 50 years. The phenomenon is known as “shrinkflation,” and it occurs when companies downsize their products in an effort to cut costs. It may be most evident in food products, where the standard size of packaged goods suddenly gets smaller. For this and many other economic joys, we can thank Joe Biden.

Shrinkflation is yet another negative consequence of high inflation, which significantly raises a business’s production costs. Businesses seeking to remain competitive and avoid significantly raising sale prices simply shrink the size of individual products sold.

Thanks to Biden’s sky-high inflation rate, which is showing no signs of dropping anytime soon, businesses across the board have begun downsizing their products. Everything from Angel Soft toilet paper to Bounty paper towels to Gatorade to Doritos has been shrinking. Folgers coffee has decreased its canister amount, going from 51 oz. to 43.5 oz. The breakfast cereal Honey Bunches of Oats has downsized its standard box of cereal from 14.5 oz. to 12 oz., a decrease of 17%. Of course, the price of coffee and cereal has not decreased, with the result for the consumer being simply spending more for less.

Of course, companies don’t advertise the sudden product downsizing, likely assuming that many customers won’t notice the change. The Daily Mail reports, “When [Folgers was] confronted about the 7.5 ounce reduction per canister last month on social media, which should see a decrease of more than a dozen cups of coffee, the company cited a new, more efficient bean pressing technology as to why the cup count has not been changed.” That’s called blowing smoke.

Shrinkflation “proliferates in times of high inflation as companies grapple with rising costs for ingredients, packaging, labor and transportation,” the Associated Press reports. “Global consumer price inflation was up an estimated 7% in May, a pace that will likely continue through September, according to S&P Global.”

The trouble is that the inflation-induced trend of shrinkflation rarely reverses. Companies “upsizing” their product sizing generally only occurs when inflation is low and market competition pushes businesses to either lower their prices or increase the amount of product per package.

It can’t be stated enough — Biden and his administration’s leftist policies targeting fossil fuels have been the primary contributing factor for both the high price of gas as well as the high inflation rate. That and flooding the economy with colossal amounts of money. And yet all Biden and his administration have done is blame everyone and everything else for the fact that his policies are failing the American people.

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