When Government Subsidies Stopped, Doritos Got 15% Cheaper.
Posted by freedomforall 17 hours, 21 minutes ago to Government
Excerpt:
"PepsiCo spent $2.8 million last year lobbying to keep junk food eligible for food stamps.
But last week— after Health and Human Services Secretary Robert F. Kennedy Jr. got 18 states to ban SNAP purchases of products like soda, candy, and processed snacks— PepsiCo announced price cuts of up to 15% on Doritos, Lay’s, Tostitos, and other Frito-Lay products.
The company’s official explanation was “affordability.” CEO Ramon Laguarta cited low-income consumers are switching to store brands.
But the timing tells the real story.
...
So when the government stopped subsidizing demand for their products, PepsiCo had to do something they hadn’t needed to do in years: compete.
This is what the free market does— it forces companies to be more efficient, cut prices, and pass savings on to their customers.
But here’s the thing— this is one company, one product line, one government program.
Zoom out and you can see just how much of price inflation in our daily lives is due directly to government spending— before we even get into monetary policy like printing money."
"PepsiCo spent $2.8 million last year lobbying to keep junk food eligible for food stamps.
But last week— after Health and Human Services Secretary Robert F. Kennedy Jr. got 18 states to ban SNAP purchases of products like soda, candy, and processed snacks— PepsiCo announced price cuts of up to 15% on Doritos, Lay’s, Tostitos, and other Frito-Lay products.
The company’s official explanation was “affordability.” CEO Ramon Laguarta cited low-income consumers are switching to store brands.
But the timing tells the real story.
...
So when the government stopped subsidizing demand for their products, PepsiCo had to do something they hadn’t needed to do in years: compete.
This is what the free market does— it forces companies to be more efficient, cut prices, and pass savings on to their customers.
But here’s the thing— this is one company, one product line, one government program.
Zoom out and you can see just how much of price inflation in our daily lives is due directly to government spending— before we even get into monetary policy like printing money."
Also from the article: "We might finally find out how much of this economy is real. And that, frankly, is what makes it so hard to fix. Because so many peoples’ livelihoods now depend on the government gravy train." Think about the cost of tax preparation to comply with the convoluted tax code and exactly what does all that time and expense produce that is useful? ...I can hear a toilet flushing...
can drop by 50%. You will still have to prepare tax returns though and live in a place
that doesn't tax worldwide income. You could also avoid winter if desired and health
care is as good or better for lower prices in some countries.
Staying in the US is not economically rational for many people, but non-economic
issues often are more important.