Wednesday, October 27, 2021

Skimpflation, Shrinkflation and the Rising Rebellion of Workers and Consumers

While Corporate America is focusing on preserving its precious profits, its customers and workforce are rebelling by walking away.

We all see shrinkflation on a daily basis: the 16 ounce container is now 13 ounces, the breakfast cereal box is now so narrow it topples over, and so on.

More subtly, the quality of ingredients is also diminishing: sharp-eyed consumers note that salt, sugar and "artificial flavors" are increasingly used to mask the decline of quality as producers scrape the bottom of the barrel to eke out a profit.

A recent NPR article proposes another form of untracked inflation: Skimpflation, the decline of services as prices march higher. Meet Skimpflation: A Reason Inflation Is Worse Than The Government Says It Is (via C.A.).

The article notes that skimpflation isn't just a reflection of greedy corporations squeezing consumers to fatten profits (cough, Disney, cough)--Skimpflation is a direct result of the workforce declining to take jobs in which they are treated as chattel.

The article mentions the wholesale decline of service that traces back to the shortage of labor: long waits, spotty maid service (hey pal, you try lifting those super-jumbo mattresses to tuck in sheets all day long for garbage-level pay), the demise of breakfast buffets and Disneyland's still-defunct tram service (entry prices have soared, but never mind--you have to come here, right, because we brainwashed your kids, so pay up and shut up because you have to pay, there is no way out.)

As I have been saying for some time, labor has been devalued and denigrated for decades, most recently in my conversation with Max Keiser.

In an economy obsessed with measuring money, economists focus on pay and benefits, as if those metrics are all that matters. What about being valued, having some say about one's work, being respected for one's efforts and earning dignity, not just rapidly depreciating dollars? None of those realities ever enter mainstream economics, but that doesn't mean they don't exist.

It's not just low pay that makes work wretched, it's being treated as an object owned by the employer. Exploitation comes in many flavors, and they all taste bad.

There's another factor left out of economists' obsession with counting dollars: the public is increasingly unhinged, and those having to deal with the public are paying an increasingly steep price. Flight attendants are being assaulted, workers are being threatened, cussed out, etc. Who wants a job where someone seeking to vent their rage can unload on an employee?

Labor's quiet rebellion is feeding a self-reinforcing feedback loop of collapse: Corporate America, so accustomed to treating its workforce like donkeys--just load on more work--has responded to labor shortages by increasing the workload of those still on the job, burning out the remaining employees in the process.

This Darwinian feedback--those willing to stay on the job are soon crushed by overwork and screaming customers-- increases the pressure on managers to cut services and load more work on whomever is left as the sole means of meeting management's relentless demands for more sales and profits as the means to do so fall off a cliff.

The Financial Nobility's answer--give the super-wealthy more trillions--isn't trickling down to the real world. Conjuring money out of thin air while changing absolutely nothing in the real-world economy is not going to force workers to take chattel jobs which only get more oppressive with each passing day.

Imagine the berobed noble being driven down from the castle to address his army of indebted serfs and you have a snapshot of Corporate America: oh how sweet and endearing the noble's false phrases of appreciation, and then the whip comes out.

It's not just the workforce that's rebelling--consumers will eventually rebel, too. The solution to corporate scrimping on service is to simply stop giving them money. Don't wait in line for diminished products, don't book the room or flight, do something better (and more satisfying) with your time and money.

The returns on trying to make all this go away by giving another trillion or three to the super-rich are diminishing fast. Quiet Rebellion leads to mass exodus which leads to a death-spiral of diminishing spending, debt and the quantity and quality of goods and services, because the Prime Directive is increase profits or you're gone.

While Corporate America is focusing on preserving its precious profits, precious stock market bubble and even more precious billionaires, its customers and workforce are rebelling by walking away. Good luck wooing them back with declining quality in both jobs and products. While we glorify self-glorifying, supremely arrogant billionaires, the economy is quietly collapsing beneath the rah-rah cheerleading narrative. Reduce the purchasing power of wages for 45 years as you load on more work and eventually the banquet of consequences is served: Hey Mr. Billionaire, take this job and your rocket and shove it.




If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts (Kindle $7, print $17, audiobook now available $17.46)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.



Recent Videos/Podcasts:

Charles Hugh Smith on the Failure of the Federal Reserve and Rising Secular Inflation (31:16) (with Richard Bonugli, FRA Roundtable)

four monster waves that are about to crash onto the Fed's beach party (with Gordon Long, 40 min.)

My COVID-19 Pandemic Posts


My recent books:

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).



Become a $1/month patron of my work via patreon.com.




NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.

Thank you, Mark P. ($54), for your splendidly generous contribution to this site -- I am greatly honored by your support and readership.

 

Thank you, Steve S. ($5/month), for your marvelously generous pledge to this site -- I am greatly honored by your steadfast support and readership.


Thank you, Charles S. ($54), for your fantastically generous contribution to this site -- I am greatly honored by your support and readership.

 

Thank you, Christopher F. ($5/month), for your superbly generous pledge to this site -- I am greatly honored by your support and readership.

Terms of Service

All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.


Our Privacy Policy:


Correspondents' email is strictly confidential. This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative). If you have other privacy concerns relating to advertisements, please contact advertisers directly. Websites and blog links on the site's blog roll are posted at my discretion.


PRIVACY NOTICE FOR EEA INDIVIDUALS


This section covers disclosures on the General Data Protection Regulation (GDPR) for users residing within EEA only. GDPR replaces the existing Directive 95/46/ec, and aims at harmonizing data protection laws in the EU that are fit for purpose in the digital age. The primary objective of the GDPR is to give citizens back control of their personal data. Please follow the link below to access InvestingChannel’s General Data Protection Notice. https://stg.media.investingchannel.com/gdpr-notice/


Notice of Compliance with The California Consumer Protection Act
This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising. If you do not want any personal information that may be collected by third-party advertising to be sold, please follow the instructions on this page: Limit the Use of My Sensitive Personal Information.


Regarding Cookies:


This site does not collect digital data from visitors or distribute cookies. Advertisements served by third-party advertising networks such as Investing Channel may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative) If you have other privacy concerns relating to advertisements, please contact advertisers directly.


Our Commission Policy:

As an Amazon Associate I earn from qualifying purchases. I also earn a commission on purchases of precious metals via BullionVault. I receive no fees or compensation for any other non-advertising links or content posted on my site.

  © Blogger templates Newspaper III by Ourblogtemplates.com 2008

Back to TOP