Patriot,

In what was widely panned as a bitter, mean-spirited State of the
Union address, President Biden took an odd detour to complain
about "shrinkflation" - the business practice of avoiding raising
prices by instead shrinking the amount of product.

Thus, Biden's beloved ice cream, once sold in half-gallon tubs,
is now sold in meager three-pint containers, tapered to appear
larger than they really are.

But as I discuss in my latest column - read it below - Biden
misplaces the blame for "shrinkflation." It's the policies of the
Federal Reserve - their own insidious, covert operation to steal
from the value of the dollar by counterfeiting - that forces
companies to follow suit.

It's your money they make worth less and less every year. That's
the real "shrinkflation" - which is simple inflation, nothing
more.

As I argue in the column, Congress needs to confront the Fed and
reduce the budget.

If you haven't already done so, be sure to send your directive to
Congress to reduce spending.
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And even if you already have, it's always a good time to tell
Congress to Audit the Fed!
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Read the full column below, and if you support C4L's efforts to
rein in the out-of-control Fed and reduce spending, please
support Campaign for Liberty with a contribution.
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For Liberty,

Ron Paul


Blame the Fed for "Shrinkflation"

President Biden may have recently made history as the first
president to discuss snack chips in the State of the Union
message. He used snack chips to illustrate the phenomenon of
shrinkflation. Shrinkflation occurs when businesses reduce the
amount of goods sold in order to avoid raising prices. President
Biden pointed out that businesses hope that, since both the price
and the size of the package remain the same, most consumers will
not notice they are getting fewer chips, cookies, or whatever
other product has been affected by shrinkflation.

President Biden called on Congress to pass legislation, sponsored
by so-called moderate Senator Bob Casey of Pennsylvania, to crack
down on companies that reduce the amount of a good in a package.
Biden and his congressional allies and media apologists think
that this will stop shrinkflation. They think this because they
believe shrinkflation is caused by corporate greed. In fact,
shrinkflation is a rational response to increased prices caused
by the Federal Reserve's dollar depreciation.

Businesses reduce the amount of a product sold as a means to cope
with rising prices of materials needed to make their products
without directly raising the price paid by consumers. Unless
greed is the only human emotion that fluctuates with the Federal
Reserve's policies, the fact that shrinkflation only occurs when
Federal Reserve policies cause major price inflation should show
anyone willing to think logically about these issues that the
Fed, not greedy businesses, causes shrinkflation.

Making shrinkflation a federal crime would force more businesses
to increase their prices. This would give the American people a
more accurate picture of how the Federal Reserve's price
inflation is affecting their standard of living. Shrinkflation is
impossible to quantify. Shrinkflation's existence indicates that
the impact of inflation is well above the Consumer Price Index's
report of a 3.2 percent increase in prices over the past year.
The Federal Reserve's interest rates increases have not been as
effective in fighting price inflation as the government's
manipulated statistics make it appear.

If Biden wanted to stop inflation, he would start by reducing
federal spending and paring down the over 35 trillion dollars
national debt. These steps would allow the Federal Reserve to
reduce its efforts to monetize the federal debt in order to keep
borrowing costs low.

Disappointingly, but not surprisingly, President Biden's proposed
fiscal year 2025 budget fails to cut spending. It also proposes
the government borrow nearly two trillion dollars a year for the
next decade. While congressional Republicans have declared
President Biden's "big spending budget" dead on arrival, the fact
is that, with few exceptions, Republicans are just as addicted to
welfare-warfare spending as their Democratic counterparts.
Therefore, instead of fighting for real and substantial
reductions in spending, most Republicans are happy to pretend
that getting Biden and the Democrats to agree to a one or two
percent reduction in the rate of spending growth addresses the
problem with excessive spending.

The movement to shrink government must continue to grow. To
achieve this government shrinking goal, Congress must cut
spending. Congress must also pass the Audit the Fed legislation
and legalize competing currencies such as Bitcoin and precious
metals. Congress should also pass legislation forcing the
government to live within its means by forbidding the Federal
Reserve from purchasing federal debt instruments.
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