Dear editor,
We all have been faced with noticeable price changes, especially at the grocery store, that have been blamed on inflation. Inflation, shrinkflation and greedflation have all had a role to play.
Inflation is a “normal” economic principle where prices increase over time for consumer goods and services. This happens as the cost of raw materials increases because of scarcity, higher labor costs, war, etc. It’s usually measured annually. Shrinkflation is when a company decreases the size of a product – beverages, candy bars, bags of chips – but maintains the price in order to boost or maintain profits. Greedflation is when companies excessively increase prices to take advantage of an inflationary situation to grow their profits. Prices are increased far beyond any additional costs the company may experience.
There are several factors that have contributed to the higher prices we see. The global pandemic disrupted many supply chains, making some products scarce, while demand increased. Increased labor costs due to higher wages, and increased fuel costs due to reliance on foreign energy sources play a role. Natural disasters like droughts, floods and crop or animal diseases can affect the supply, thus the prices. War in other parts of the world interferes with shipping or perhaps the number of products usually produced in countries now at war is decreased.
Accountable USA, a nonprofit, nonpartisan group released a list of familiar brands that have practiced greedflation– Amazon, Walmart, Home Depot, Costco, Lowe’s, CVS Health, Target, Nestle, Proctor and Gamble, Coco Cola, Kraft Heinz, and Tyson. The list covers many of my household’s weekly purchases.
Along with increased prices, these corporations have also earned record corporate profits of $24.6 billion. CEO pay has skyrocketed. According to the Economic Policy Institute, CEOs were paid 351 times as much as a typical worker in 2020. Think of some of the recent reports about the astronomically high pay for Tesla and Amazon CEOs. No wonder consumers don’t feel that the booming economy is touching their daily lives when they continue to see high prices for normal goods.
Consumers have acted in their own interests. They are bargain shopping, buying store brands that cost less than name brands, buying in bulk to reduce costs, changing what they buy, and searching for deep discounts, often not at big name chain stores.
In May 2024, as customer spending decreased, Target, Walmart and Aldi all announced price decreases “for the consumer.” In reality, these corporations have realized that consumers have control over their spending and have had it with price gouging. They’re taking their wallets and walking away.
When you hear a blanket condemnation of government caused inflation, stop and think about who really controls the flow of goods and services in our capitalist country. Then demand that the 2017 tax cuts that decreased the permanent corporate tax rate from 35 percent to 21 percent, be reversed as soon as possible. Individual tax cuts are due to expire in 2025. Time to call or write your representatives to ensure that your tax bill does not increase after next year while corporations continue to benefit from tax rate cuts forever.
Nancy Kolb of Webster
Editor’s note: Wausau Pilot & Review gladly publishes commentary from readers, residents and candidates for local offices. The views of readers and columnists are independent of this newspaper and do not necessarily reflect the views of Wausau Pilot & Review. To submit, email [email protected] or mail to 500 N. Third St., Suite 208-8, Wausau, Wis. 54403.
