I always knew that when the economy went south, it was the consumer that inevitably took it in the shorts.
The reasons why prices rise in present-day America is usually due to Leftist do-gooders trying to shove Socialism down our throats.
Examples include government increasing corporate taxes to ensure the rich “pay their fair share.” But if their taxes increase, say… five percent, then they just increase the cost of the item by five percent.
Or if the powers-to-be keep printing money out of thin-air, the buying power of our dollars have just lessened. Obviously, the less of revenue will be passed down to the consumers.
Well, gang… that’s exactly what’s happening right now.
As reported by reporter Clarisa Diaz over at the everything-business news site Quartz.com (emphasis mine);
Do consumers notice when their everyday products get smaller? Often they don’t and companies are taking advantage by reducing the amount of product they sell while keeping prices the same. Shrinking product sizes to pad profits is not a new tactic but it grows in popularity during periods of shortages and inflation. Some consumers are noticing and documenting their shrinking groceries on the shrinkflation subreddit.
Even with today’s release of US inflation figures from the Bureau of Labor Statistics showing prices increased 7.9% in the last 12 months, consumers may not realize they’re paying more for some of their regular purchases because companies are reducing sizes while keeping prices the same.
Frito-Lay confirmed Doritos shrunk their bags due to pandemic pressures. “Inflation is hitting everyone…we took just a little bit out of the bag so we can give you the same price and you can keep enjoying your chips,” said a representative. Representatives at Proctor & Gamble which makes Crest toothpaste, and at Mondelez—which makes Nabisco Wheat Thins, confirmed reductions in their products’ volumes but did not disclose the reasons why. While Crest 3D White does now sell a 5 oz tube, its 4.1 oz tube shrunk to 3.8 oz. Bounty, according to a representative at Proctor & Gamble, got better as it got smaller since the paper towels are more absorbent than they used to be.
Unfortunately, instead of being honest with us, sometimes corporations piss down our backs and tell us it’s raining.
Gatorade—the sports drink brand of PepsiCo—recently replaced its 32 oz size with a 28 oz bottle for the same price. That’s the equivalent of a 14% price increase.
“Basically we redesigned the bottle, it’s more aerodynamic and it’s easier to grab,” said a company representative. “The redesign generates a new cost and the bottles are a little bit more expensive…this is only a matter of design.”
Gatorade did not respond to questions about whether its customers preferred the aerodynamic bottle or the difference in manufacturing costs.
I know it’s impossible for me to type this out, but imagine me coughing and saying “Bullshit” at the same time.
With this all said and done, don’t think I’m anti-Capitalist. Anything but. I’d be happy just to see government get the hell out of the way.