BETHLEHEM, Pa. — Pennsylvania Sen. Bob Casey and different Democrats have been closely focusing their rhetoric on “greedflation,” a time period used in charge company “gougers” for greater costs — although their claims haven’t any connection to actuality.
Take Casey’s latest advert titled “Shrinky Dink.” It options suited males in masks creeping round a grocery retailer in the midst of the evening and changing its merchandise with smaller packages.
“They hope you gained’t discover,” Casey says within the advert, referring to what Democrats name “shrinkflation.” “CEOs sneak round, downsize favourite manufacturers, charging extra for much less. Similar packaging, smaller field, acquainted brand, fewer servings.”
Casey has spent greater than $10.86 million on media promoting since March, in keeping with Keystone Renewal PAC researchers. Of this whole, about $7.55 million, or practically 70%, has been with regards to inflation — one of many swing-state voters’ prime issues.
Whereas Republican messaging is fast in charge President Biden and Democrats’ extreme authorities spending for rising costs, Casey touts his proposal to crack down on firms supposedly driving the upper price of products.
“My plan offers the Federal Commerce Fee the facility to punish company value gouging,” Casey continues in “Shrinky Dink.” “And let’s roll again their enormous tax breaks to place extra money the place it belongs: In your pocket.”
There’s only one drawback with this method: The Federal Reserve says it merely isn’t true.
A Might research printed by the Federal Reserve Financial institution of San Francisco discovered the inflation surge is best defined “by the mixed impact of provide chain disruptions and a drop in labor provide throughout the post-pandemic restoration that occurred simply as client demand rose.”
The Fed attributes the easing of inflation Biden and his allies usually point out to the therapeutic of post-COVID provide chains, an immigration wave that has added to the availability of staff and cooling borrowing demand within the wake of excessive rates of interest.
“Information for the present restoration present that the rise in company income is just not significantly pronounced in contrast with earlier recoveries,” the research states. “Markups additionally haven’t performed a lot of a job within the slowing of inflation because the summer time of 2022.”
Even The New York Instances has fact-checked the president. The paper rated “False” Biden’s declare inflation “was at 9% once I got here in, and it’s now down round 3%.” The year-over-year price was 1.4% when Biden took workplace in January 2012; it reached a 9.1% peak in June 2022.
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