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    Warren and Dean demand Coke, Pepsi and General Mills stop ‘shrinkflation’

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    It’s becoming a common experience for Americans going to the grocery store: your bag of chips seems lighter, your favorite drink comes in a slimmer bottle, and you’re running out of laundry detergent more quickly than usual. And yet things are staying the same price.On Monday two Democratic lawmakers launched an attempt to get to the bottom of the phenomena, accusing three major companies, Coca-Cola, PepsiCo and General Mills, of shrinking the size of products while charging consumers the same price – a price-gouging practice known as “shrinkflation”.Senator Elizabeth Warren and US representative Madeleine Dean allege in letters to the CEOs of the three companies that they have participated in shrinkflation, subtly decreasing the size of cereals and sodas sold in stores.General Mills decreased its box of “family size” Cocoa Puffs from 19.3 ounces to 18.1 ounces over the last few years, the letter alleges. Meanwhile, PepsiCo downgraded the size of Gatorade bottles from 32 ounces to 28 ounces.Companies often say that decreases in size can be attributed to changes in packaging that are unrelated to pricing or the economic environment. PepsiCo told NBC News in July that their 28-ounce bottle has been around for years and that the company had planned to widen its distribution as part of a long-term strategy.But many remain skeptical at the widespread variety of products that seem to be shrinking.“Shrinking the size of a product in order to gouge consumers on the price per ounce is not innovation, it’s exploitation,” Warren and Dean said in a statement. “Unfortunately, this price gouging is a widespread problem, with corporate profits driving over half of inflation.”People on social media have been talking about the slimming down of products for months, with users posting about their shrinkflation experiences with side-by-side pictures of products before and after shrinking.“Major corporations are trying to gaslighting us, trying to make us believe that what we’re seeing is not real,” said TikTok user Melissa Simonson in a video from March, where she points out the sizes of drinks, cereals, chips, orange juice, gum and laundry detergent, among other grocery store items, have gotten smaller.Coca-Cola, PepsiCo and General Mills did not immediately respond to requests for comment on the letters.skip past newsletter promotionafter newsletter promotionThe Bureau of Labor Statistics, which calculates the US inflation rate each month, says its economists try to incorporate any instances of shrinkflation into its inflation calculations. For example, if a tub of 64-ounce vanilla ice cream was priced at $5.99 in January, then the price-per-ounce is $0.093. If in February, the tub remains the same price, but shrinks to 60 ounces, the price-per-ounce has gone up, representing a kind of price increase.Warren and Dean also used the letters as an opportunity to blast the companies for paying less taxes on higher profits after Donald Trump’s corporate tax cuts in 2017. The lawmakers cited a recent report from the Institute on Taxation and Economic Policy that said Coca-Cola, PepsiCo and General Mills all paid taxes at a rate of 15% or under from 2018 to 2022, despite making billions in profit.“We strongly oppose these corporate tax giveaways, and have fought to pass tax increases on big corporations, including the 15 percent minimum tax on billion-dollar corporations,” the lawmakers said in their statement. “No corporation should pay a lower tax rate than working Americans – especially when that same corporation turns around and gouges consumers on the other end through shrinkflation.” More

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      Republican ‘attacks’ on corporations over voting rights bills are a hypocritical sham | Robert Reich

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      For four decades, the basic deal between big American corporations and politicians has been simple. Corporations provide campaign funds. Politicians reciprocate by lowering corporate taxes and doing whatever else corporations need to boost profits.The deal has proven beneficial to both sides, although not to the American public. Campaign spending has soared while corporate taxes have shriveled.In the 1950s, corporations accounted for about 40% of federal revenue. Today, they contribute a meager 7%. Last year, more than 50 of the largest US companies paid no federal income taxes at all. Many haven’t paid taxes for years.Both parties have been in on this deal although the GOP has been the bigger player. Yet since Donald Trump issued his big lie about the fraudulence of the 2020 election, corporate America has had a few qualms about the GOP.After the storming of the Capitol, dozens of giant corporations said they would no longer donate to the 147 Republican members of Congress who objected to the certification of Biden electors on the basis of the big lie.Then came the GOP’s wave of restrictive state voting laws, premised on the same big lie. Georgia’s are among the most egregious. The chief executive of Coca-Cola, headquartered in the peach tree state, calls those laws “wrong” and “a step backward”. The chief executive of Delta Airlines, Georgia’s largest employer, says they’re “unacceptable”. Major League Baseball decided to take its annual All-Star Game away from the home of the Atlanta Braves.The basic deal between the GOP and corporate America is still very much aliveThese criticisms have unleashed a rare firestorm of anti-corporate Republican indignation. The Senate minority leader, Mitch McConnell, warns corporations of unspecified “serious consequences” for speaking out. Republicans are moving to revoke MLB’s antitrust status. Georgia Republicans threaten to punish Delta by repealing a state tax credit for jet fuel.“Why are we still listening to these woke corporate hypocrites on taxes, regulations and antitrust?” asks the Florida senator Marco Rubio.Why? For the same reason Willie Sutton gave when asked why he robbed banks: that’s where the money is.McConnell told reporters corporations should “stay out of politics” but then qualified his remark: “I’m not talking about political contributions.” Of course not. Republicans have long championed “corporate speech” when it comes in the form of campaign cash – just not as criticism.Talk about hypocrisy. McConnell was the top recipient of corporate money in the 2020 election cycle and has a long history of battling attempts to limit it. In 2010, he hailed the supreme court’s Citizens United ruling, which struck down limits on corporate political donations, on the dubious grounds that corporations are “people” under the first amendment to the constitution.“For too long, some in this country have been deprived of full participation in the political process,” McConnell said at the time. Hint: he wasn’t referring to poor Black people.It’s hypocrisy squared. The growing tsunami of corporate campaign money suppresses votes indirectly by drowning out all other voices. Republicans are in the grotesque position of calling on corporations to continue bribing politicians as long as they don’t criticize Republicans for suppressing votes directly.The hypocrisy flows in the other direction as well. The Delta chief criticized the GOP’s voter suppression in Georgia but the company continues to bankroll Republicans. Its Pac contributed $1,725,956 in the 2020 election, more than $1m of which went to federal candidates, mostly Republicans. Oh, and Delta hasn’t paid federal taxes for years.Don’t let the spat fool you. The basic deal between the GOP and corporate America is still very much alive.Which is why, despite record-low corporate taxes, congressional Republicans are feigning outrage at Joe Biden’s plan to have corporations pay for his $2tn infrastructure proposal. Biden isn’t even seeking to raise the corporate tax rate as high as it was before the Trump tax cut, yet not a single Republicans will support it.A few Democrats, such as West Virginia’s Joe Manchin, don’t want to raise corporate taxes as high as Biden does either. Yet almost two-thirds of Americans support the idea.The basic deal between American corporations and American politicians has been a terrible deal for America. Which is why a piece of legislation entitled the For the People Act, passed by the House and co-sponsored in the Senate by every Democratic senator except Manchin, is so important. It would both stop states from suppressing votes and also move the country toward public financing of elections, thereby reducing politicians’ dependence on corporate cash.Corporations can and should bankroll much of what America needs. But they won’t, as long as corporations keep bankrolling American politicians. More

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      Georgia activists call for Coca-Cola boycott over ‘deafening silence’ on voting rights

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      Georgia activists are calling for a statewide boycott of Coca-Cola as part of an escalating effort to get major corporations to oppose significant voting restrictions Republicans in the state legislature are on the verge of approving.Sign up for the Guardian’s Fight to Vote newsletterThe call for the boycott, first reported by the Atlanta Journal Constitution, is coming from leaders of the sixth district of the AME church, which includes more than 500 Black churches in Georgia. Bishop Reginald Thomas Jackson, the presiding prelate, said that there had been a “deafening silence” around voting rights from Coca-Cola and other companies that had put out statements last year supporting the Black Lives Matter movement.“Our position is they’ve not lived up to their own words. By your silence you’re actually being complicit. So we’re going to say to them, if you want our money, then you ought to have our back,” he said in an interview. He added that he expected other civil rights groups to join in the boycott calls soon.For weeks, activists have been placing pressure on Coca-Cola, as well as Delta Airlines, Home Depot, Aflac, UPS, and Southern Company – all based in Georgia – to use their political clout to oppose bills in the legislature that would require voters to provide ID information when they vote by mail, limit the availability of absentee drop boxes and give the state legislature more power to meddle in local election boards, among other measures.But those major companies have declined to speak out directly against the bills. The Georgia chamber of commerce released a statement earlier this month saying it had “concern and opposition” to provisions in the legislation. The Metro Atlanta Chamber of Commerce has been a little more specific, saying earlier this month it was focused on addressing weekend absentee voting, drop boxes and ID requirements.Coca-Cola told the Guardian earlier this month it supported both chambers of commerce and a “balanced approach to elections”. A spokesperson did not immediately respond to a request for comment on the boycott.Georgia lawmakers will probably hammer out a final version of sweeping voting changes before the legislative session ends next week. While they walked back an effort to cut weekend early voting, they still have left sweeping restrictions in bills that civil rights groups say are a blatant effort to suppress votes.Jackson said he plans to lead a protest at the Georgia capitol on Thursday and did not rule out calling on boycotts of the other major companies.“Boycotting is not something we really want to do,” he said. “Coca-Cola is a fine company. But at the same time, we think all of these major companies have responsibilities on issues of social justice.” More