There's a growing narrative online – especially among Kamala Harris supporters – that grocery prices really haven't increased that much. The idea is that inflation has slowed and prices are stabilizing. But in the age of grocery store loyalty cards and online shopping, we literally have the receipts to show the reality.
Yes, prices are starting to come down in some areas, and there is a global deflationary trend happening. But don't be fooled – compared to 2019, prices are still dramatically higher. This deflationary trend isn't a sign of economic health; it's a sign of a recessionary storm on the horizon.
This all traces back to COVID. When the pandemic hit, the government's stimulus checks artificially inflated incomes by 20%, sparking a massive spending spree. Over a million people moved to Florida, and 750,000 moved to Texas, driving up demand in key sectors like housing and leisure. Prices naturally rose across the board as industries responded to booming revenue. But then, the government stopped the stimulus checks, demand faltered, and inflation surged as supply chains struggled to catch up.
Now, we're seeing the consequences. Retail warehouses are full of goods, demand for shipping has plummeted, and oil prices are dropping as shipping companies go under. Companies are laying off workers, and the idea of a “soft landing” is quickly fading away. This deflationary trend isn't a relief – it's a warning sign of a much larger economic issue.
Prices Are Down, But Don't Be Fooled – They're Still Much Higher Than 2019
Let's look at some hard numbers. Below are a few key items from my Instacart orders over the years. These aren't just random items – these are everyday essentials that we all buy regularly. While prices have started to drop in 2024, they're still much higher than they were in 2019:
While prices for some items might be dropping in 2024, they're still nowhere near what they were pre-pandemic. This isn't just inflation – it's the result of an economic whiplash that started with COVID stimulus and has now transitioned into a recessionary environment.
The Corporate Perspective: Deflation Is Not Recovery
It's not just consumers feeling the pinch – big brands and corporations are also struggling with the effects of this deflationary trend. Companies like McDonald's, Home Depot, and Nestle have reported weaker sales, layoffs, and shrinking profit margins as they adjust to a slowing economy. Here are a few key examples:
- McDonald's saw its first negative same-store sales since 2020 in Q2 2024, with U.S. sales down 0.7%. The CEO noted that customers are becoming more cautious with their spending.
- Home Depot reported a 3% drop in comparable store sales in Q2 2024, with customers deferring purchases due to economic uncertainty.
- Nestle lowered its 2024 sales growth forecast to 3% from 4%, acknowledging that pricing increases are slowing faster than expected.
These companies' struggles reflect the broader recessionary environment. Democrats will likely try to spin the inflation numbers as a success of “Bidenomics,” but the rising unemployment numbers tell a different story. The last payroll report before the election, set to be released on November 1st, will likely show more pain.
No Soft Landing in Sight – The Recession Is Here
The bottom line is this: The current deflationary trend isn't a sign of recovery – it's a sign of a recessionary storm brewing. As companies lay off workers and consumer demand drops, the idea of a soft landing is looking increasingly unlikely. What we're seeing now is the culmination of years of artificially inflated demand, disrupted supply chains, and erratic economic policies.
While some prices are indeed coming down, we must be cautious about what this actually means. Deflation is often a symptom of a shrinking economy, where demand has fallen so significantly that businesses are forced to lower prices just to move inventory. This isn't a healthy correction – it's a warning sign. The goods that were stuck off the coast in 2021 and 2022 have been unloaded, but now they're sitting in warehouses with nowhere to go as consumer demand dries up.
The upcoming payroll reports, particularly the one released just days before the election, will likely show more economic pain. As companies continue to tighten their belts, layoffs will mount, and the recession will deepen. Democrats may try to tout the slowing inflation as proof that “Bidenomics” is working, but the reality is much grimmer. Rising unemployment numbers and weakened corporate earnings paint a very different picture of the economy.
Call to Action:
Look at your own grocery spending over the years. Use your loyalty card data or online shopping history to compare prices and see how your spending has changed. Share your findings and contribute to the conversation – this isn't just a national issue, it's something affecting households across the country. Let's keep the conversation grounded in reality, backed by data, and focused on what really matters.
This article originally appeared on Rational Ground. The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News. Republished with permission.
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Based on historical fact, when prices increase due to inflation and knowing that inflation is caused by the U.S. Government when the U.S. Treasury requests additional paper currency to be printed, which dilutes the value of all monies already in circulation, the price increases by businesses and corporations so they don’t feel the results of inflation, never go down. They simply become the norm. This is the governments way of collecting more tax money so they have no incentive to force prices back down. This reduces the amount of discretionary money the public has to posibilly put into savings or pay off debt. This is governments way of “turning the screws to consumer so slow the inflation originally created by government. Pay attention people. High inflation does not harm government officials or employees.
Inflation is created by government deficit spending requiring the printing of more currency that dilutes the value of the currency in circulation. IT IS ALWAYS GOVERNMENTS FAULT. The only way to stop this is to “audit the Federal Reserve Bank” to expose to the public the real deep corruption that IS THE FED”. The Federal Reserve Bank IS NOT a government agency or entity. It is a private corporation originally established by very wealthy American citizens and foreign bankers. It is not controlled by the U.S. Constitution or laws. It follows it’s own constitution and laws which favor the wealthy investors. This needs to be exposed to the public because most people think the FED is a U.S. government agency or entity. IT IS NOT !!! Then the people will demand the FED to be abolished and no fiat currency will ever be printed again and inflation will be ended for good. THIS IS WHY THOMAS JEFFERSON WAS TOTALLY OPPOSED TO A CENTRAL BANK. HE KNEW THE DANGERS INVOLVED. Alexander Hamilton, not even a natural American citizen was responsible for a central bank. He was nothing but a foreign born orphan who was hired as a clerk by GENERAL George Washington. He had great influence on Washington and convinced Washington to form a central bank despite Jefferson’s warning. . Do a search about Hamilton. You will find what I present here to be the absolute truth.