Bob Casey, Dems blame ‘greedflation’ for high prices — but Fed study tells different story
BETHLEHEM, Pa. — Pennsylvania Sen. Bob Casey and other Democrats have been heavily focusing their rhetoric on “greedflation,” a term used to blame corporate “gougers” for higher prices — though their claims have no connection to reality.
Take Casey’s recent ad titled “Shrinky Dink.” It features suited men in masks creeping around a grocery store in the middle of the night and replacing its products with smaller packages.
“They hope you won’t notice,” Casey says in the ad, referring to what Democrats call “shrinkflation.” “CEOs sneak around, downsize favorite brands, charging more for less. Same packaging, smaller box, familiar logo, fewer servings.”
Casey has spent more than $10.86 million on media advertising since March, according to Keystone Renewal PAC researchers. Of this total, about $7.55 million, or nearly 70%, has been on the subject of inflation — one of the swing-state voters’ top concerns.
While Republican messaging is quick to blame President Biden and Democrats’ excessive government spending for rising prices, Casey touts his proposal to crack down on corporations supposedly driving the higher cost of goods.
“My plan gives the Federal Trade Commission the power to punish corporate price gouging,” Casey continues in “Shrinky Dink.” “And let’s roll back their huge tax breaks to put more money where it belongs: In your pocket.”
There’s just one problem with this approach: The Federal Reserve says it simply isn’t true.
A May study published by the Federal Reserve Bank of San Francisco found the inflation surge is better explained “by the combined effect of supply chain disruptions and a drop in labor supply during the post-pandemic recovery that occurred just as consumer demand rose.”
The Fed attributes the easing of inflation Biden and his allies often mention to the healing of post-COVID supply chains, an immigration wave that has added to the supply of workers and cooling borrowing demand in the wake of high interest rates.
“Data for the current recovery show that the increase in corporate profits is not particularly pronounced compared with previous recoveries,” the study states. “Markups also have not played much of a role in the slowing of inflation since the summer of 2022.”
Even The New York Times has fact-checked the president. The paper rated “False” Biden’s claim inflation “was at 9% when I came in, and it’s now down around 3%.” The year-over-year rate was 1.4% when Biden took office in January 2012; it reached a 9.1% peak in June 2022.
