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Because the economic situation in some regions of the world continue to worsen, politicians are using newly invented economic terms like "Shrinkflation" to to blame the companies as being too greedy, and to "rationalize" the effects of printing too much money and having too much debt - that the government may never repay.

I believe as Bitcoin HODLers, we should welcome more money-printing because Bitcoin will absorb some of that excess liquidity, and make the price surge. But it should also make us more distrustful of the policy makers because they know there's no "Shrinkflation", only inflation and the negative effects of money-printing.

So they want to blame companies for being greedy while they keep printing more money and piling up debt. Yeah we should be cool with extra money in circulation because it could boost Bitcoin's value but at the same time, there's a side-eye at policymakers who might not be upfront about the real deal like no fancy terms, just plain old inflation and the downsides of printing too much money. It's not our fault to have these trust issues with government

Companies are greedy, or at least most of them, and you shouldn't doubt that. The fact is that many manufacturers of food, drinks and other products have reduced the weight of the products in their packages, and in addition have raised their prices without communicating this to their customers. That speaks volumes about how much they respect those they actually live off of. However, I must admit that I found one exception, because I read a notice on one package that said something like "the quantity of this product has decreased by xx% since 202x".

Politicians are always looking for excuses for their incompetence, so even in this case it is not strange that they try to blame the poor standard of their citizens on companies that just want to make as much profit as possible. Maybe they should have thought of that when they almost completely stopped the world economy due to a virus that had a death rate of about 1% or even less, and that among people over 60 years old.


I would not agree that we should look forward to something that will only harm the general population in the long term, because the debts created by today's politicians will be paid by the children of our grandchildren, and that is not the inheritance we should leave them. Bitcoin will succeed even without crazy financial measures, and with all that, I'm always more for the fact that as few ordinary people as possible own as many coins as possible compared to rich individuals and companies.

There are already several topics about this, and you surely remember this one -> Shrinkflation (https://bitcointalk.org/index.php?topic=5451188.0)

Shrinkflation - it is not a new term in economics. There is always two sides to a story.

Money printing - floods the market with new money supply effectively bringing down the purchasing power of money.

Effect on the companies - in a competitive market, when the purchasing power of money goes down, the companies struggle to maintain profitability if they sell a certain product at the ongoing price point. When increasing price is not an option due to steep competition, they reduce the size/quantity of the product. That's what it is.

The government will always play such games to pass on the blame.

Well, high levels of inflation are bad for people who use that currency, and even if we're Bitcoiners, it doesn't mean we don't take part in the traditional economy and don't suffer when prices for basic goods surge. As for shrinkflation, I actually don't mind. The portion gets smaller, but the price remains the same, which means that it remains affordable to people despite inflation, even if it means that now they're buying a smaller portion for the same price. I think it's better than simply raising prices and keeping the sizes the way they used to be.

Shrinkflation is just another term to refer to situations that occur invisibly or events that market players are not aware of, carried out by product owners, as explained by Wikipedia (https://id.m.wikipedia.org/wiki/Shrinkflation) regarding the Shrinkflation narrative.
The more money is printed, the more people will realize how important it is to be a long-term Bitcoin holder to protect themselves from the influence of increasingly uncertain economic conditions.
We simply enjoy what they then produce, including the Shrinkflation narrative.

Politicians and economists should seriously get off their fannies and actually do something instead of creating new fancy words to describe their own mess. It's like this everywhere too, although I'd say France seems to be keeping the record for economic hardship related protests as these days it's farmers turn to be protesting the most and Macron has deployed the military to suppress their protests,.... again! That's instead of actually solving the problem...

We have the parliament elections coming up in a month; so these are the days for "buzzwords" and fake promises for us too. We will soon have weirder terms than "shrinkflation" coming :D For now candidates are signing up so for now the funniest thing IMO is a dude who has been absent a third of the parliament sessions who became a candidate again...

Nah, money printing hurts the economy as a whole so much in the long run so that could even negate the profit that is made of bitcoin rising.

Shrinkflation has been around for decades, it's nothing new or unique. Companies try to trick consumers, their customers, in all sorts of different ways - so you always have to be on the look out and probably want to stop using the worst offenders because their are other options out there. Whether it's adding more packaging space (very wasteful), injecting meat with water so it appears to weigh heavier, or purely re-arranging the shape of a chocolate bar to skim off extra grams while still selling it at the same price, the options to be sneaky are huge and in use. There really should be laws that force companies to change their packaging and make sure customers are aware of this abusive manipulation.

I heard this word for the first time,. first I heard inflation, then stagflation, and now Shrinkflation, although I did search what is shrinkflation but what I did not understand that how governments are blaming companies that are reducing the product amount/size while the price is not decreasing, Means either the price is same or increasing. How this thing is creating a hurdle for the government to repay the debt.

I mean one thing is with inflation, shrinkflation will increase and that's obvious, so why are they referring to shrinkflation while the main reason is inflation. I think they just practising new words, although I never heard this word from my country's political leaders till now (they might have used this word but I never saw then on TV using this word).

Talking about BTC relation with extensive amount of printing I won't say anything because BTC don't need that, it is already getting everything all it need now is scalability upgrade and you will see more adoption. By scalability upgrades I mean to say fee issue.

shrinkflation is about retaining same retail price but reducing products content/weight

product manufacturers know that consumers have a preferred retail rate. so dont want to sell goods for more, else people just dont buy their product and instead buy a cheaper off-brand
so to counter it in those situations, they make smaller sizes while retaining the retail pricepoint to find the middleground to still offer consumers a branded product at a set pricepoint while continuing to produce a product even when production costs have increased due to inflation

shrinkflation does not cause politicians to then print money...

also if you think printing money is an answer to help bitcoin market rise. you are fooling yourself..
bitcoin doesnt need to push for fiat inflation. bitcoin doesnt need fiat policy to control bitcoin market.

..bitcoin has its own economic reasons to rise..
so fools wanting more fiat money printing actually doesnt help

after all if a loaf of bread cost $1.50 and goes upto $3 due to inflation(no shrinkflation of loaf size, just inflation of fiat loaf price)
OP thinks it will cause bitcoin to 2x.. however when selling bitcoin x2 and buying bread they still end up getting the same number of loaves.
thus pointless

bitcoin should continue to do its own deflation thing to hedge against fiat inflation. not demand more fiat inflation under the STUPID pretence that bitcoin needs fiat inflation to move the bitcoin market

bitcoin has its own economic methods. its own deflationary features. we dont need fiat inflation to control the bitcoin market effects. bitcoin is a natural hedge against inflation without needing to play into inflation

Lucius you have probably made my day with your tough and soft truth here. You hit the point one after other and lift me less words to say.

Anyways I will still have to contribute a little to this, I totally disagree with OP on this statement below because I will not be happy to see people suffer for the sake of few of us here that are Bitcoin enthusiast. although it will increase the rate at which Bitcoin will be need to cope with the inflation but it's not still a very good idea for me. imagine how hard life is for the poor mass in some areas or countries and how it will be if this inflation keeps going. No I don't welcome more money-printing because it favours me but want the wellness of the masses which we are still among.

Yeah I noticed that if the prices stayed the same for certain goods, the portions are almost always smaller. Usually the container is the same but the portions inside are smaller.

I noticed this when I had old boxes of some products I used to buy. The box is the same, but the Grams per box is usually slightly smaller. Very sneaky way of dealing with inflation pretty much. Leave the price the same but put less product on the inside.

Some products are worse becuase they increased prices and also shrunk the box. So you are getting 2 bad deals for the same product as before.

thats called greedflation

inflation is just price increase
shrinkflation is same price less product weight
greedflation is both price up and product weight down

Put blame on someone is easier than saying sorry because of own mistakes, that's why the government blame the company and citizen, company blame the government and citizen blame the government.

Government prints out money to pay debts and tightening the tax rules to make the rich can't evade from paying tax.
In other scenario when the citizen complaints for getting smaller size, the company will blame the government since they can't reduce the FED interest rate. This will make the citizen blames the government.

It's always a blame game when they're incompetent and will point out any entity that they can. They can do something about it with their policies and jobs but instead, they make it look like it's uncontrollable which is like half of it is true.

If they've got a better version of themselves and compassion to their people, they're not going to just look at their pockets with these hardships of the economies does. They'd always resort to printing money and blaming any global factors that can't be control.

While the printing of money will definitely have positive effect to Bitcoin's value and volatility. I don't like another series of printing because we're the one to suffer with the effect of it.

Yes, we get to have more value with the Bitcoins that we hold but in general, everything is going to be up as this inflation is inevitable whenever these scenes come again.

Shrinkflation isn't a new term, if I recall correctly, it's a phenomenon where due to the constant economic turmoil due to inflation, the size of the once beloved products are subjected to downsizing and the downsizing of the product can be subtle or obvious, with obvious one, you'd easily see it with their packaging and the weight of the product and with the subtle, they just create the product a bit more smaller than what it used to or skimp on ingredients, there's also one time where they sell fun size of some chips due to this, shrinkflation is a subtle one at best because you don't see it and piece it together once you saw it.

Welcome to capitalism ;) this is one of its defining features. Of course the corporations and other big players become richer at the end of all this.

Although I think making up words for the purpose of politics is just stupid. It waters down discussion and it only makes the people who are debating devolve their arguments into personal attacks.

Shrinkflation is only the beginning of the collapse.


It is funny you used that word because there is actually a term for that.

It is called, Skimplation (https://www.bbc.com/worklife/article/20231003-skimpflation-an-even-sneakier-form-of-shrinkflation). If you think "Shrinkflation" is bad, wait till you experience "Skimpflation" which is much much worse.


The reason is simple, there is too much money but not enough stuff for everybody. I mean there is enough stuff but not quality stuff. You are eating chicken for example but it is all fed with antibiotics. Have you ever seen a chicken farm? It is disgusting.

At least halt of the world population should disappear so the other half can live like human beings. Thanos get to work mf.

Every economic term was newly invented at some point, with some being more idiotic and/or intentionally obfuscating than others.  And by the way, liquidity is also a term made up by somebody and is used often and often misused.

See that bolded part of your statement?  How are you defining liquidity?  How do you know that if money-printing continues that bitcoin will benefit from it?  There's no guarantee whatsoever that it will, I'd argue.

And finally, I don't care if you're the hardest of the hardcore bitcoiners, nobody ought to be rooting for more money-printing.  Why?  Because I would bet the ranch that you buy nearly everything with fiat, and loose policies regarding money supply will destroy your purchasing power.  And even if you buy things with bitcoin, there's most likely a payment processor involved that converts your BTC to fiat, which is what the merchant wants....and the fiat price of whatever you're buying is going to go up, and bitcoin might not. 

Note: when I say "you" I don't mean you personally, Wind_FURY.  I'm speaking in generalities.

"Greedflation" is another term I stumbled upon last year. I guess that by shrinkflation you mean greedflation.
Shrinklfation is when a company sells less quantity of a product at the same price, instead of rising the price for the previous quantity.
Greedflation is when companies raise prices only for the sake of making bigger profits and using the overall inflation as an excuse to raise the prices. Their production costs didn't change that much, but they keep raising the prices for the consumers. The banks and telecom companies in my country want to increase their prices, even though their costs didn't change that much. This is pure greedflation.

In that case, we think similarly, and only if as many people as possible realized how much they are actually using us for their personal goals, maybe something would change. Mass protests by farmers across the EU may be just the beginning of some big changes.

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I also have elections this year, three times, but the most interesting ones for the parliament are not too uncertain, given that the ruling party has absolute power over everything, whether it is the media or the agency that will eventually enter votes from paper into digital system, not to mention a few hundred thousand more voters than people who have the right to vote at all...

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I watched a relatively recent documentary on N about how some chicken farmers in the US are now starting to grow mushrooms because they literally got sick of doing the business of raising poultry. And what about the breeding of cattle and literally lakes of excrement and urine that are then spread over the fields with the help of pumps, and all this practically at people's doorsteps.

Political parties are good at labelling economic mismanagement, no? A distraction to transfer criticism from risky budgetary measures to the private sector. Avoid getting lost in their cleverness. Cryptocurrency's relevance is driven by systemic monetary policy abuse

We shouldn't just accept the consequences of poor policies, Bitcoin HODLers. Cryptocurrency benefits from market liquidity, but not just price changes. Understand the economic consequences and promote sound money principles. Governments and the unstable financial system that requires Bitcoin should be distrusted. Supporting Bitcoin means supporting a future where value isn't squandered by the few but secured by trusted programming

Shrinkflation is another way that businesses do to maintain their earnings. Since inflation is there, raw materials are getting expensive as well for manufacturers so to maintain their earnings while keeping their price in the market the same, they reduces the size of their product. Tbh for a business' pov I think this is a smart move since customers tend to have a second thought of buying a product when their prices keep increasing. So I can't really blame these businesses since that's how capitalism works and that's their way of retaining their customers. Tho what I don't like about this thing is similar with shrinkflation, which is cost-cutting. They cut their expenses and it affects the quality of the product.

But regardless of these economic terms emerging, we all know that government plays a big role with it. The results of their actions will always reflect on the economy. Also, I agree that most of these terms have the same root cause which is the inflation. On the contrary, I don't think that this inflation occurs solely because they print too much money. Yes, that's one thing but there are also other factors.

Actually businesses that make those "Shrinkflated and Skimpflated" products have expenses too. Expenses like employee wages - which they need to increase, expenses on raw materials, shipping costs, logistics costs, and several other operational costs all increasing to run the business. But the government and the media create a narrative that businesses = greedy/evil,  to conceal the fact that it's the government's fault for inflating the money supply. It's inflation why everything is more expensive.

I'm not sure if it's good for Bitcoin. In fact, anything that reduces purchasing power prevents people from buying extra Bitcoin and forces them to focus on buying necessities like food, water, clothing, shelter, energy etc. They simply can't afford to invest anymore.

Th governments are as helpless as the corporations.

When you think about it, the govs are not evil too. The companies have increasing expenses that's why they are skimping and shrinking their products and the governments have more people to take care of that's why they create more money. It is not the governments' fault that we are breeding mindlessly like animals.

What was the govs gonna do? Stop printing money? And what good would that do? It would increase the unemployment and people would die of hunger...

At least when they print more money, we have the money to buy shit for our meals. We have been eating total shit for the last i dunno, since McDonald's&KFC started to the business?

The problem is people (and I don't mean educated people who only make as many kids as they can look after) breed like animals in some parts of the world.

Sometimes, I'm torn between wishing everything would turn so much worse so that everybody up there will realize how badly they run the government and managed the economy, and for the people to be finally fed up and forcefully demand accountability and better services from them, and praying that things would improve soon so that everybody would live a good life.

Ordinary people are just being fooled all the time. Shrinkflation, stagflation, inflation, or whatever new terminologies those up there come up with, these are nothing but symptoms of their incompetence, greed, selfishness, apathy.

Inflation will just make everything too expensive and that's true that instead of having extra funds to invest, majority of the people are going to buy necessities than choose to invest. I've heard of this term shrinkflation before but still, it ends up with the same common thought about inflation. Whatever the terms we make or invent just to define and justify some of these situations that are produced and done by inflation, one thing is for sure that this is inevitable and this is like death and taxes, a permanent thing on this world.

The two are not mutually exclusive, are companies greedy? Of course, the whole reason to create a company is to make more money for yourself, and the more money you can make the better, and if you can get away with selling inferior products then that is exactly what any company will do.

However it is also true that governments are printing too much money and this is putting pressure on those companies to remain profitable, so blaming those companies for raising prices, reducing the content of the product or both makes no sense, as companies should be free to charge whatever they want for their products, and it is up to each person to decide if they want to buy that product for the listed price.

I think you are not using the word "shrinkflation" in the correct context.

"Shrinkflation" is the practice of companies reducing the size of a product, while maintaining it's sticker price.

It is actually a marketing strategy to fool consumers into believing that prices are beating the rise in inflation, but they are reducing the size or weight of the product.

You paid $2.50 for a can of soda (500ml) in 2023 and in 2024, the company reduce the content to (400ml) and they still charge you $2.50. (The size or design of the can are slightly altered to look the same, but it holds less soda)

Shrinkinflation happened in all countries around the world because as we can see the world population is already more than 8 billion and keeps increasing every year by around 0.8 - 1.0%, to fulfill the world's needs companies are forced to do shrinkflation also not only to fulfill the market but the raw materials prices is also increasing. In my country that affected by Shrinkflation right now is chicken, chicken right now is very small due to the fast harvest, many people put their money into something that gives us fast returns rather than investing in industries or production.

We need to open our eyes to care about this matter because our population does not match to our current production, not many young people want to dive into the production sector.

That's what they do my guy, these companies that they're blaming are people that are in their circle so it's just a show so people don't have to blame the government, the companies can take the blame. I don't think this has to do with the printing, they've been doing this stuff for centuries so it's not a surprise to me that now we're suffering in all of this, they're definitely greedy, both the companies and the government.

That is a critical issue regarding shrinkflation, which is indeed a phenomenon affecting many countries globally. Shrinkflation, where companies reduce the size or quantity of products while maintaining prices, is often a response to rising production costs, including raw materials, labor, and distribution expenses. This practice allows companies to manage their costs while still meeting market demand.

Shrinkflation can have significant implications for consumers, as they may receive less value for their money without necessarily seeing a decrease in prices. This can particularly impact lower-income individuals and families who rely heavily on these essential goods for their daily needs. The preference for quick returns over long-term investments in industries or production can exacerbate the issue, because it may lead to underinvestment in sectors critical for sustainable economic growth and development.

shrinkflation =  smaller sizes same price
skimpflation = lesser quality product/ingredients same price
greedflation= some or all of above + price increase
excuseflation= raises prices even if not affected by any of the above

The point isn't about whether some entity -government/corporations - are evil or not. It's how the government are shifting the blame away from themselves, and to the corporations while making themselves look like they didn't do anything to cause the current economic/financial condition.

The point is also about people who read it in newspapers or watch it in YouTube/T.V., people merely believe what they are being told like sheep - without critical thinking.

What's new in the government? They always want to look innocent or good in the public but in reality the people already know how they work or how they manage the country, shrinkflation is a term where in because of the inflation and high cost goods the business owners choose to the option of cutting the portion of their products but the price will be the same, that's why many people are becoming more poor or hungry because the money they has from their salaries are become more not enough for their daily lives, imagine the inflation keeps on raising while the minimum wage are still the same, and the government didn't give a damn about the situation, notice how will they react when the social media are involves they will fake their image in the crow to look decent and a responsible part of governement thay suppose helping thr poor peoples of family.

Plus it's either the corporations perform "Shrinkflation" on their products/services, OR maintain the quanitity as what it had before, BUT increase the prices of their goods and services. It's simple economics. If a centralized entity in control of the money printer turns it on, and grows the total supply of money, then inflation will always follow.

Simply, inflation and deflation are caused by changes in the monetary policy and government spending.

inflation is measured primarily by the consumer price index...
meaning prices of goods and services are inflation factors

when costs go up this makes public services cost more. which causes the treasury insufficient to pay for public services, which the causes governments to print money, to get money to pay for public services..
to cut the circuit. governments even try to do their own shrinkflation. by still charging people the same taxes but offering less public services. but eventually end up needing to money print

however printing money then causes consumer good sellers greedflation to raise prices because they see more money in the economy to take advantage of.

what being suggested is greedflation of consumer goods prices then cause even higher money printing. which if it continues, leads to hyper inflation

the big question is chicken or egg
some say its the egg.. governments printing money to bail out banks in 2008 started consumer greedflation, and the snowball began
yet some will say it was the greedflation of real estate before 2008

the latest round starting 2019-2020 was the covid trigger
governments printing money for healthcare, and campaigns to keep people home and socially distanced. and such, followed by issues with goods shipments,  followed by retailers needing to increase prices to get back to business in less customer visiting times,

Inflation is the expansion of the money supply.

Inflation, the name comes from the verb "to inflate" which means "to expand", like a balloon. Prices don't expand. They may hike. It is the increasing/expanding money supply which causes the price hikes because there aren't enough goods and services to counter the demand coming from the newly printed currency.

try looking passed the kindergarten dictionary explanation and see how the real world outside your house measures things
yes yesterdays national debt becomes tomorrows GDP where the domestic product is too a measure of inflation as its all part of the consumer price index. but you have to look into the details of how things happen and effects one thing has on the other,
hence the chicken and eggs
which came first

real estate greedflation 1990's-2007,
or
US gov spending 1990's gulf wars and middle east defense post 9-11
or
bank bailouts via money printing 2008
market recovery and CPI growth
covid money printing
covid market decline
debt ceiling raising
skrinkflation, greedflation, excuseflation

also to note: inflation is not simply inflation of money supply. because sometimes that printed money gets syphoned and hidden away at the top and never enters the general circulation.
examples of this is the differences of trickle up economics vs trickle down economics
for instance if general populous are given government cheques. then retailers get more income and their CEOS take that extra profit and hide it in the investment markets

That's not kidergarten dictionary, it is the meaning of inflation.

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There is no chicken and eggs. The cause for inflation is the expanding money supply. That's the only reason why we are experiencing price increases. The reason is simple, obvious and it is clear who does it.

Stop printing and the inflation stops immediately.

Why can't they stop printing? That's the question we need to ask.

https://www.talkimg.com/images/2024/02/11/v5QW5.png

^ That's inflation.

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Source:

https://en.wikipedia.org/wiki/Austrian_school_of_economics


Austrian economics = Real economics

https://en.wikipedia.org/wiki/Shrinkflation

Politicians are used to take advantage of every terms they find useful for their own personal agendas and goals. However, it doesn't mean we should neglect or disconsider such terms as valid ones for our critical thinking over what is happening in our modern societies and how we are being negatively affected by the changes in the markets, especially the food market which is directly impacted by Shrinkflation.

Anyway, as quoted above, it wasn't politicians who created terms like Shrinkflation. It has been being used by economists and historians along the time who have studied enough to consider this theory, which nowadays can be easily verified by anyone, just by comparing a visit to a supermarket few years ago, to a visit to a supermarket right now.

https://thehustle.co/wp-content/uploads/2022/03/News-Brief_2022-03-22T011411.963Z.png

Shrinkflation is a consequence of inflation. Both coexist together. And money-printing just accelerates the process.

It's actually not possible to deny the existence of Shrinkflation phenomenon... On the other hand, you can debate how innocent companies and businessmen are in this situation. That is, you can argue if you think they are greedy, or if they don't have any choices besides decreasing packagings' sizes to survive in the market.

now ill complete the snippet you forgot to include(using your own source)

https://en.wikipedia.org/wiki/Austrian_school_of_economics#Inflation

but i did find it funny how you PURPOSEFULLY snipped off first third and last third of a sentence

inflation is measured by things like the CPI

where by for instance some measure it as what can you buy using $100 from 1900-2024
where by some for instance look at the cost of a loaf of bread over 100 years
some do real estate square-metre comps
some do a average shopping cart of groceries. and so on to measure inflation
some do an amalgamation of all of the above

"Greedflation"? I believe there's no psychological effect in that matter. It's simply economics. Increase the money supply = purchasing power UP. Purchasing power UP = more demand for product and services. Prices will go up no matter the psychological state.


It might have started before that when the banks were very lenient in giving loans out to borrowers at low rates. Government spending was also high. It simply wasn't sustainable, and the banksters themselves also made a casino out of those mortgages by making leveraged derivatives out of them for the foreign market.

I will "DYOR", I don't know the absolute details.

greedflation is not about when the good times role/ or more money printing in the economy = more purchasing power..
because purchasing power is more psychologically from the stand point of the consumer(in the good times) having more money to want to buy more things, less concerned with finding discounts..

greedflation is from the standpoint of the producer, shrinking goods and also raising prices.. emphasis: in the bad times when money is tight for consumers who need to/end up buying less and want to find discounts

yep purchasing power is when consumers(purchasers) have the power
where in the good times consumers are spending more and retailers get to raise prices, that is standard economics.. but not "greedflation"


also a side note
not all money printing causes "purchasing power" increase for the consumer
it depends if the money print is trickle up or trickle down

for instance money printing to bail out banks did not help the consumer gain purchase power
for instance money printing to give out covid stimulus cheques to citizens did help the consumer and thus purchase power
purchase power(hint is in the name) is when the consumer(as purchaser) has more power

not all money print enters the lower levels of the economy of the lower-class, working-class. but can be held and hidden in the upper echelons of institutions

To be perfectly honest, the whole shrinkflation thing started when companies realized that they can't keep the product the same and just increase the price based on inflation. This means, if you make something go from 40 to 60 and then 60 to 80 and then 80 to 100, eventually at some point you will fail to sell, but if you just drop the cost then you could keep the price the same, make more profit, and keep selling it because people will keep on buying it.

The inflation reached a point in the world right now that I have literally zero clue how am I suppose to live. Like at this point, my income is lesser than my expense and there is no possible way for me to make that work, it's impossible for me to make any other way, it just can't be done. So this is why if any company increases the price, I would just stop buying it.

Seems like some HODLers are cheering for more printed paper, thinking it'll pump the price like magic. But hold on, it ain't that simple. Sure, more money floating around can push Bitcoin's price up, but it's not guaranteed. Think of it like throwing gasoline on a fire – it might make it bigger, but it could also get outta control. Plus, relying solely on printed money for Bitcoin's success is like building a house on sand – not exactly stable, right?

Now, that "shrinkflation" thingy? It might sound fancy, but it's basically inflation in disguise. Smaller packages, same price? That's your purchasing power shrinking, bro. Ignoring it just because it benefits Bitcoin in some way ain't cool.

What if, and hear me on this one, Shrinkflation never left???

In the Philippines where I live, the term never died and is being actively used for everything that is goods and has noticeably gone down in size. I personally see it in indulgences like chocolate bars and candies while our goods here have sneakily reduced the size of their products while retaining the same price point to evade controversy. Personally there is benefits to shrinkflation compared to outright increasing the price. This is especially evident in third-world countries like the Philippines where the citizens are expected to not really be able to buy stuff at full price, that's why we have microstores here in the first place that sells items by the piece (pack of instant ramen per piece, sugar by the cup, etc.) to supplant the inability of the general public to buy these stuff in bulk or in full price. In an economic setting like that companies and providers couldn't really jack their prices up to retain the same quantity of contents in a product so to circumvent this and still be able to provide the public with their products, they are forced to shrink their product's sizes.

It's never good to have to work with inflation as nobody's winning in this game except the 1 percenters, but the thing is that in situations like these where you are forced to adapt you really have to do so or else you're going to be cooked.

money supply always needs to continue printing..
imagine a system where everyone equally had say $50k. you would think no new money is needed..
yet when someone else is born where is the money going to be for the new addition. are people suddenly suppose to live on $49k to supplement a 2% population growth, how about next year. how about the year after that

there is real reason why the comparison of population growth (2%) aligns with the magic number of preferred inflation. because growing populations cause growing need of consumer goods and services which affect the markets if not controlled

money supply was meant to be a counter to inflation. to control it and not cause it

Shrinkflation seems to be one of the biggest problems in the US - because a great leader addressed the people and shared his thoughts ::) Personally, I don't even mind that the packaging of unhealthy products has decreased, because that should be good for health, right?

https://www.talkimg.com/images/2024/02/12/vgYmT.png (https://www.youtube.com/watch?v=GcVTzgZyGro)

(click on the picture to watch the video)

shrinkflation has its advantages.. it pushes people to live back within their means and not over indulge
it still provides products when costs have gone up but without causing retail prices to go up
far better then saying sorry no product unless you pay 2x straight away

we have also seen the times where the opposite of shrinkflation occurs. where you go to fast food places and they offer "super size" soda cheap/as standard offerings, or convenience store 'meal deals' of a sandwich, snack and a drink offering larger 'share size' snacks. and drinks go from 500ml bottle

it runs in cycles..
the share size is the normal offering then shrinkflation makes the snack sizes the normal offering with a 330ml drink... then in good times again the share size returns as the snack and 500ml bottle return

when things start turning to good times you get the snack size doing "buy one get one free" to prime people that the pricing are to 2x but advertised as "free extra". then bulk buy at the 2x, then change it to large share size at same pricepoint. then shrink back to snack size at same price point.. rinse and repeat

shrinkflation has been happening for some time, it's only this time that a president is actually talking about it and it's not about explaining why. it's trying to blame. does he want chaos to happen there?

the old man doesn't even realize he is the president but can complete a lie talking about shrinkflation to blame the businesses. it is like inviting people to loot the companies that's the narrative. he didn't mention the black national anthem? they must know this is going to happen, no wonder they need police security in the Superbowl in the state where they want police defund. 

shrinkflation re-occurs. i remember it recently and i remember it in the 2008 era and in the 1990s
.. but.. between each crisis we get the good economic times.. where companies sell things in bulk.. and then we complain how companies are making people fat by offering huge portions.. lets call it bloatflation

in the UK we usually complain about winters too cold summers too hot.. america complain about portion sizes too small or too big

welcome to the world of ever changing weather and economics

over the decades ive heard it before.. brands coming out saying "we heard you, we listened" and then showing how they are re-releasing their "original recipe" versions again. and other names of things to suggest things going back to pre-shrikflation stuff

Thanks for providing the definition, this should be in the OP. I think not everyone has heard about this term.

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Well, in my experience companies actually does reduce the quantity of the product, I notice usually on some snack or drink. And this new term doesn't eliminate the reality that there is an inflation happening and change my perception about that. So it's just another term to describe one of the effect of inflation. Other than that, printing more money without good and thorough without proper fiscal research will only harm the economy.
Sure Bitcoin would absorb some of those money, but the effect of excessive circulation of money, Bitcoin woldn't solve that.

Nobody is a God. Only God can create out of nothing... I think it is normal to use methods like this if inflation continues to rise and it is no longer possible to increase the price of products any further. If the size of a chocolate bar we like has shrunk, the company that produces the chocolate bar has had to do so to meet certain calculations. We won't die if we don't eat our favorite chocolate. Before the 1850s, chocolate as we know it was not produced. If certain conditions around us are beyond our control, we must adapt to our environment.


I agree with this idea because if the money supply remains constant, we don't produce new value and if we don't produce new value, total welfare remains constant and development stops.

also worth noting credit cards didnt exist pre 1970's
all the speak of "credit rate" and peoples fico scores is only 50 years old.

suggesting inflation is related to debt, or money supply is just silly things school kids are told, educated in bad economics where they need to have a good credit rate to beat inflation and prosper(the whole 'use credit as there is not enough money supply to earn your way through life' lies)

heck mindrust tried to debunk that inflation was related to goods price by showing a FRED-M2 chart, suggesting inflation was money supply..
funny part is people were not screaming about inflation 2013-november 2021. yet M2 money didnt rise after november 2021 according to his own chart.. yet price of goods did rise and shrinkflation reduced produce weight/quality after nov 2021. and people did start screaming inflation in 2022-2023

gotta love it when someones own sources debunk their own premiss.

..
what the chart does reveal is the trickle up economics of covid stimulus cheques of 2020-2021 ended up being syphoned out of M2 money(into M4 that includes the institutional investments stuff). which did not mean inflation. it actually cause another different economic crises.. "the wealth gap" between rich and poor