Biden calls out ‘shrinkflation’ as part of a broader strategy to reframe how voters view the economy
>> President Joe Biden is going all-in on calling out “shrinkflation.”
The term applies to a seemingly covert way for companies to raise prices by ever so slightly reducing the size of their products. There’s suddenly fewer pretzels in the bag, less toothpaste in the tube and shorter candy bars.
“It’s called shrinkflation,” Biden said in his State of the Union speech on Thursday night. “You get charged the same amount and you got about, I don’t know, 10% fewer Snickers in it.”
The president’s focus on shrinkflation is part of a broader strategy to reframe how voters think about the economy before the November election. Biden is trying to deflect criticism about high prices and instead pin the blame on big business.
He also is attempting to show everyday people that he’s fighting for them as he struggles to convince the public that the economy has strengthened under his leadership.
He talked about the shrinkflation issue in a video released on Super Bowl Sunday and highlighted a social media post by the “Sesame Street” character Cookie Monster that complained about smaller cookies.
The country’s low 3.7% unemployment rate and record 16 million applications to start new businesses have largely been overlooked by voters, who are dwelling on higher grocery and housing prices after inflation struck a four-decade high in June 2022 at 9.1%. Even as inflation has drifted down to 3.1% annually, shoppers are still worried about paying a premium at supermarkets.
“Joe Biden recognizes that high grocery prices are an ‘Achilles Heel’ politically,” said Ryan Bourne, an economist at the Cato Institute, a libertarian think tank. “When consumers are going into the grocery store, they remember that they’re paying more than they did in 2019.”
But Bourne cautioned that, in the alternative, companies might have simply raised their list prices without shrinkflation, possibly upsetting consumers more and hurting the president’s approval on the issue. Just 34% of U.S. adults say they agree with how Biden has handled the economy, according to polling by The Associated Press-NORC Center for Public Affairs Research.
“A number of companies did that because they thought that their customers would prefer it to paying higher headline prices,” Bourne said. “So I think the president should be very careful what he wishes for when he says he thinks shrinkflation is unfair.”
Sen. Katie Britt, R-Alabama, delivered the GOP response to the State of the Union and put the blame for inflation solely on Biden.
“His reckless spending dug our economy into a hole and sent the cost-of-living through the roof — the worst inflation in 40 years,” Britt said.
Republicans have claimed that prices jumped because of Biden’s $1.9 trillion pandemic relief package, even though the price increases were also global in nature. That’s a sign that broken supply chains and higher energy and food prices after Russia’s invasion of Ukraine played a role.
In a report published Wednesday, the liberal economic advocacy group Groundwork Collaborative dug into the inflation numbers published by the Bureau of Labor Statistics and documented the evidence of shrinkflation, finding it played a meaningful but modest role in higher prices since 2019.