Ask any American consumer, and they will tell you just how out of control the cost of living is these days. From rent to groceries, it’s becoming nearly impossible for millions of Americans to pay their bills, let alone buy anything that could be considered an extra.
For years, economists have blamed inflation for the ever-increasing costs. But in March 2024, President Biden called out the big corporations, saying they could decrease prices if they wanted to. Now, Target is actually doing so, and Biden hopes Americans will give him the credit.
President Biden Calls on Stores to Lower Their Prices
In March 2024, President Biden addressed the American people regarding the ongoing cost-of-living crisis. But he didn’t blame inflation like most people do; instead, he faulted corporations and their greed.
Biden said that day, “Too many corporations raise prices to pad their profits, charging more and more for less and less.”
Biden Launched the Inflation Strike Force
That same week, the president announced he would be launching a new strike force with the Federal Trade Commission and the Department of Justice that he said would take on “unfair and illegal” corporation price gouging.
Lina Khan, the chair of the FTC, said in a statement “We’re excited to be co-chairing the president’s new Strike Force on Unfair and Illegal Pricing, which builds on the FTC’s far-reaching work to promote competition and tackle unlawful business practices that are inflating costs for Americans.”
It May Not Be Inflation Causing the Increased Cost of Groceries
The inflation strike task force got straight to work and has already found several examples of corporations who are bending the laws to ensure higher price points or consumers.
A report from the Federal Trade Commission, published in March, states that several large grocery store chains were actually taking advantage of supply chains to raise their prices. Meanwhile, the FTC is already in the process of suing Kroger and Albertsons for their attempted merger, which would have allegedly limited competition and driven prices even higher.
Groceries in the US Are 25% More Expensive Than Four Years Ago
For years, the nation has blamed Biden and, more specifically, inflation for the constantly increasing cost of groceries. However, it’s becoming clear that may not be the whole truth.
In fact, CBS News reported that the cost of groceries has gone up by a whopping 25% since January 2024. That means that Americans are paying much more for far less food, just as Biden said. And thanks to the task force, they now know that several companies are keeping prices higher than they need to be.
Target Just Announced It Will Be Slashing Prices This Summer
Just two months after Biden’s instruction to corporations to decrease their prices, Target, one of the largest retailers in the country, announced that it would, in fact, be lowering its price tags.
The statement, released on May 20, 2024, explained, “Target will help consumers save big by lowering prices on 5,000 frequently shopped items… These price reductions will collectively save consumers millions of dollars this summer.”
Target Is Focusing on Groceries
Specifically, Target said it would be focusing the discounts on its grocery department and other necessities: “Consumers will enjoy savings on everyday items such as milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food and more.”
For many Americans, Target’s grocery discounts could literally be life-changing. A recent study showed that an almost unbelievable 60% of Americans are currently struggling to pay for groceries.
Target Said the Lower Prices Are to Help the American People
In Target’s press release, the company claimed that they decided to lower their prices for the good of the American people.
The executive vice president and chief food, essentials, and beauty officer, Rick Gomez, explained, “We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more.”
President Biden Wants Voters to Know He Made a Difference
On the exact same day that Target announced its new lower prices, the Biden administration posted a response to the announcement on their X, formerly Twitter, profile.
@WhiteHouse said, “President Biden called on grocery chains making record profits to lower prices for consumers – and they’re answering the call. @POTUS is calling on other big corporations to join these leaders and lower grocery prices to give families more breathing room.”
Biden Is Fighting for America’s Vote
With the US presidential elections right around the corner, of course, Biden is desperately fighting for every vote.
And because millions of Americans blame the president for the ongoing cost of living crisis, he is hoping that his words, actions, and the forthcoming results regarding corporate pricing will help secure him another four years in the White House.
Others Argue Companies Are Only Lowering Prices to Stay in Business
While Biden wants Americans to understand that inflation is not the only factor driving up prices and that corporate greed is a serious influence, many economists argue that Target’s decision to lower prices had very little to do with the president’s speech.
Instead, the company realized that Americans simply don’t have enough money to shop anymore. So, if they want to improve their sales, they literally have to reduce their prices. It truly is a business decision more than anything else.
Will American Companies Finally Lower Their Prices?
Target isn’t the only corporation that has realized they need to lower prices to keep consumers coming through the door. Fast food restaurants like McDonald’s and Wendy’s have already announced a new discounted menu.
It’s highly likely that many other big names like Walmart, Burger King, and other grocery stores and food service restaurants will follow suit to ensure they don’t lose their customers to their competitors. So, luckily for Americans, that means that by the end of 2024, prices across the board will likely be significantly lower than they are now.
