President Joe Biden demanded supermarket chains to lower soaring prices that are “ripping people off” and threatening his chances of re-election.
Biden made the remarks last week at a South Carolina event ignoring the laws of supply and demand that are beyond supermarkets’ control.
“There are still too many corporations in America ripping people off: price gouging, junk fees, greedflation, shrinkflation,” Biden said.
“Americans, we’re tired of being played for suckers and that’s why we’re going to keep these guys – keep on them and get the prices down.”
Store bosses argued that the high prices in their aisles are the result of inflation, increasing demand, and supply chain interruptions, which are factors they cannot control.
For Kroger, one of the country’s largest supermarket chains, their looming merger with Albertson’s could be the way out of the situation.
“We agree with President Biden: Too many grocers in America have increased margins in contrast to Kroger, who have reduced our margins consistently for nearly 20 years to save customers billions,” Kroger VP of Corporate Affairs and Chief Sustainability Officer Keith Dailey said.
“Through our merger with Albertsons, Kroger will lower prices for even more of America’s consumers.”
The merger is, however, likely to be blocked by the Federal Trade Commission due to its negative consequences on competition.
