I’ve been noticing food shrinkflation a lot here in Belgium lately. Smaller soda cans, biscuit packet counts going down, 125g becoming 115g etc.

And honestly, to choose between the same size package getting more expensive vs less of it… I’ll take the latter. It’s reducing consumption. Which is great as a whole, but also selfishly if I’m buying a pack of crisps and I get to eat less of it … great.

Not so great on essentials obviously but those aren’t really hit by shrinkflation as much as snacks, etc.

Okay, that’s it. I do want to stress that I don’t like paying more for the same shit, but on a practical level, if I do, I much rather get less for the same price than have to spend more and be stuck getting the same quantity.

Especially if it’s junk food… I’ve even found myself disliking the old soda can sizes when I come across them. Having gotten used to the new ones, the old ones are straight up too much.

There's a couple of other words that describe what I'm talking about - neoliberalism, lassez-faire capitalism, and in a more general sense, the Chicago school of economics - but I chose market fundamentalism because it seemed to best describe precisely what I'm talking about. I mean the belief that the market is capable of self-regulation and that governmental intervention will cause damage to the economy.

I'm asking this because there's still a lot about economics that I don't know about and so I was hoping someone with a background in the subject who would be able to better answer the question. But I realize it's probably also a political question. I wonder if it's more of an issue of our politicians pressing these views than economists and academics.

Personally, with my life's experience, it seems almost obviously wrong. I've lived through several market downturns and even a crash, and looking through history it seems like every market crash can be attributed to the market failing to correct itself.

Everywhere I turn everything is more expensive.

I'm spending less and less every month on non-necessities, buying more basic foods, never eating out, spending less on entertainment, etc but everything else just keeps going up and up.

Electricity just went up 12%, my gas bill is up 20%, rent has gone up 10% year after year, water is somehow 30% more expensive than it used to be, my groceries are more expensive than ever even though I'm buying in bulk and not buying anything fancy, I've stopped eating luxuries I used to enjoy like steak and fancy cheese because they've just gotten outrageous.

I have a good job that pays decently but my raises have been less than 3% a year and I feel like I'm getting squeezed out of everything I once had. There's no light at the end of the tunnel is there?

I've started to notice this narrative in my news feeds. The argument is high wage growth is contributing to stubborn inflation. So cooling wage growth is seen as positive. It'll help central banks pause the hike cycle sooner.

My knee jerk reaction is if wage growth is contributing to inflation it's minuscule; just enough to print the headline. I can't help but feel this narrative is a way to distract from the earlier price gouging narrative and to help employers scapegoat out of raises.

But I'll admit, I haven't looked into this topic deeply. So I'm happy to be schooled.