INFLATION SHOCK: Quantities Shrinking, Package Sizes Getting Smaller!
December 18, 2009 20 Comments
ATLANTA— It’s happening all around us. The complete debasement of the US dollar. The value of the US dollar has been falling throughout the year as the Federal Reserve purchases mortgage-backed securities and treasury bonds to pump excess dollars into the system and Barack Obama has gone on a deficit spending binge unmatched in human history. These are all tinders for big-time inflation.
Sure, we don’t yet see the galloping price increases of the 1970’s. But at the tail end of a severe recession wrought with excess capacity, we nonetheless are witnessing price increases year-over-year, rather than price decreases.
But more surreptitious than that, we are witnessing the decrease in quantities available to be purchased. The purchasing power of your dollar is declining. Rather than raise prices, manufacturers are selling you less at the same price. You think this is crazy!? Well, consider these scary facts from across the past year or more:
- The LA Times describes how Skippy increased the size of the jar “dimple” in order to reduce the quantity sold without having to raise the price.
- USA Today reports of reductions in the size of ice cream tubs and Dial soap.
- MSNBC investigates the disappearing candy bar.
- Consumer Reports demands Federal action over half-filled boxes of Rice-a-Roni.
- And last, but certainly not least, Articlebase makes the salient observation that Twitter managed to reduce the size of a blog post to 140 characters.
Less quantity. Same price.
It’s happening folks.
But the reductions in quantities can’t go on forever. Inflation is just around the corner.