In the News
On any given day, Groundwork's analyses, op-eds, reports, and commentary are featured in leading publications and on the most influential news programs and podcasts.
On any given day, Groundwork's analyses, op-eds, reports, and commentary are featured in leading publications and on the most influential news programs and podcasts.
The issue of junk fees is more top of mind for voters, said Lindsay Owens, the executive director of left-leaning economic think tank Groundwork Collaborative. Owens said high prices, whether for smaller items like groceries or big-ticket items like housing and child care, are the No. 1 issue for many families when it comes to the state of the economy. But it's not just that prices are high — it's also that they're unfair, she said.
“After 19 months of prices coming down from their peak and over two years of historically low unemployment, it’s clear we didn’t need mass joblessness to lower inflation. The Fed’s rate hiking campaign was deeply flawed,” economist Rakeen Mabud of the progressive Groundwork Collaborative think tank said in a statement.
"During this period of high inflation, where rising prices are putting a squeeze on household budgets, shrinkflation just adds insult to injury," said Lindsay Owens, executive director of Groundwork Collaborative and author of the report.
About 10% of price increases in recent years come from companies charging the same price -- or more -- for smaller items, a group of economists say.
Today's economy is a clear repudiation of the theory that mass unemployment is necessary to bring inflation down. Unemployment has been below 4% for more than 24 months and inflation has been falling for more than 19 months off of its peak. All of the evidence suggests that the Federal Reserve must cut rates before they do further harm.
With Federal Reserve Chair Jerome Powell scheduled to testify before the House Financial Services Committee and Senate Banking Committee, Groundwork Collaborative’s Chief Economist, Rakeen Mabud, urges Congress to question Chair Powell, stating "The Fed’s rate hiking campaign was deeply flawed."
Shrinkflation responsible for as much as 10% of inflation in key product categories; Biden expected to address shrinkflation at SOTU.
"Junk fees, like the excessive late fees credit card companies charge, are yet another tactic corporations use to prey on customers and juice their profit margins even further," said Bilal Baydoun, director of policy and research at the Groundwork Collaborative. "CFPB's new rule demonstrates that policymakers can—and must—take on predatory, deceptive behavior and act as a strong check on corporate power."
Today, the Consumer Financial Protection Bureau finalized a rule that prevents credit card companies from charging late fees higher than $8, which will save 45 million people an average of $220 or more than $10 billion a year.
Today, President Biden announced a new, multi-agency task force focused on lowering costs for families, known as the “Strike Force on Illegal and Unfair Pricing.” Groundwork's Lindsay Owens reacts, stating “President Biden’s new task force is a welcome sight for consumers and bad news for the corporate profiteers.”