‘Running out of money’: Kraft, McDonald’s, Whirlpool CEOs all issue same dire warning about US consumers. Get ready now
8d 4h ago by sh.itjust.works/u/FoxtrotDeltaTango in news from finance.yahoo.com
“We’re seeing negative cash flows in the lower-income brackets where they’re dipping into savings.”
Oh the money is there. But its all tied up with billionaires
The 1% accounts for 60% of spending. But they are all over leveraged or waiting for the inevitable crash so they can buy everything cheap and increase their hoard.
Compared to the ruling class, the 1%s are practically destitute
I'd love to see a source for that claim, that's some very intetesting piece of information (if true)
Rough numbers so take with a grain of salt.
https://dqydj.com/net-worth-percentiles/
When you look at the ultra wealthy 60 million is pocket change
Absolutely, but how many ultra wealthy are politicians or top bureaucrats? I'd think they would not stoop so low as to actually BE politicians instead of just... buying some.
Yes, exactly the ruling class. They buy people who enact laws that benefit them
The difference between a millionaire and a billionaire is roughly a billion dollars.
That's true, I'm more unsure about if the ruling class are bilionaires. I mean okay... it's an oligarchy where billionairs simply buy politicians or both parties at once... but "the ruling class" would usually mean politicians and top bureaucrats, wouldn't it?
It would mean it, if the politicians are the ones ruling, but since the politicians aren't the ones ruling they would not be the ruling class is what I meant
Ah, thanks, with that definition the factoid becomes way less interesting (as in not new to me)
I think I might go with your definition from now on, seems closer to official definitions than what I thought it would be.
Interesting that it translates to "political class" in german where the definition is very different, because "political class" there is basically defined as "career politicians" and excludes the capitalists ruling through financial instead of representative power. I think that's where my misconception stems from.
But won't that new ballroom be something?
/s
But billionaires aren’t the main consumer base for these brands. They buy boutique appliances and health foods more than they buy sodium laced chipped meat products and mom-and-pop’s favorite dishwasher.
For sure, I was just saying that the people who buy this stuff's money is tied up with the billionaires
Absolutely - you’re right. I just mean that these brands are complaining that they don’t benefit from their own CEOs having all the money, which is kind of amusing
The company behind brands like Heinz, Kraft and Philadelphia is now cutting prices (2) on some products that had grown too expensive, increasing promotions...
Yay! Prices are actually going to drop a little?!
...and rolling out smaller package sizes at lower price points.
Fucking jackals.
This is the second time I've seen a company claim that shrinkflation is the solution to this problem.
At this rate, they'll soon be selling individual packets of ketchup in grocery stores.
Probably for eight bucks a packet.
When a Kraft Dinner box becomes a Kraft Snack, and a new Kraft Dinner Family box appears that's smaller than the original Kraft Dinner box and costs more.
You don't want to spend $2 on macarono and "cheese"
Still won't buy them, the fact they shouldn't of done it in the first place, they can fuck themselves.
"It's what the customers want".
The children yearn for the mines.
Shrinkflation!
You mean the parasite class is having money trouble because the peasants aren't buying? How dare they opt for cheaper options when they can barely afford rent! Don't they know it's paramount to society that they slave away to engorge those who already have too much???
Yeah it’s the parasite realizing that they went overboard with sucking the blood of their host and now the host is dying.
No, it's the parasite noticing suckling blood is getting harder, how bothersome!
They're far off from realizing the host dying.
Only way to beat them at their own game in this case is to not play.
I'm doing my part helping put McDonald's out of business. They aren't cheap anymore and somehow the quality has gotten worse. I went from going once a week many years back to once a month then a few times a year to never. Every time I go I'm disappointed.
It's not even really any more expensive to go to a proper sit-down restaurant and order actual real food, anymore.
That was the reason I stopped going to Carl's Jr years ago. Got to be about the same price as a real restaurant, albeit their burgers were still pretty big and not terrible. But when your best thing used to be advertised as being as good as a sir down burger but for only $6 and it goes up to the same price as a sit down burger, I might as well go get the sit down burger.

Everytime I go I'm disappointed.
It makes me feel ill. The entire following day I feel tired and bloated.
I had lunch at Booger King last year for the first time in a long time. The whopper and fries were actually surprisingly good, freshly cooked and tasty. But god damn did I feel like shit after eating it. I suppose it was all the salt. And it was $16, and that was without a drink even.
And for what? A cold ass burger that's super small and tastes different?
I'm doing my part too! Haven't been to a McDonald's since 2024, and working hard to convince everyone I know to stop going there too.
I go for only one thing - a Sausage Egg McMuffin, maybe once a week. That's all.
They screwed up my last two orders. One didn't have an egg, and one didn't have the sausage or cheese.
Is it that hard?
Pay the lowest possible wage and get the lowest possible effort.
Yeah I only hit them up for a large milk shake to blend with wild blueberries at home. Because I'm to lazy to make my own milkshake
It's icecream and milk in a blender, and you're already putting it in a blender... What?
Cost to buy a tub of good vanilla ice cream is like $10-$12 cost to buy milk $6-$7. Cost of a large vanilla milkshake at Mcdonalds $5 buy two at the same time freeze the second because they freeze well, and I'm still ahead. Also soft serve ice cream makes better milkshake than scoop.
You think they’re buying the good stuff to put into a McDonald’s shake? Also you think they’re putting in a whole gallon of milk?
Your logic is….fascinating. Just admit to yourself that you feel lazy sometimes. It’s ok. We all do it.
You're not saving money on the gallon of milk if it just goes to waste. And they didn't say soft serve was higher quality than scoop for a milkshake, they said it was better. I took it to mean the taste and texture is better to them.
I'm doing my part because they won't sell fries a vegetarian can eat
Yeah, it's disgusting now.
I can't believe the prices, they are on par with local hamburger joints that sell food that is 4-5 times better.
I think I'm doing my part but the extreme discounts in the app every two weeks mean I'm still visiting. It is a nice break from ramen.
I totally get that! When I visited the most was when they had the dollar menu and I honestly used it to survive back then. These days it's the app and only sometimes but same thing.
You couldn't beat $3.75 for 2 sandwiches and a small fry when I had $20 to my name that had to somehow last me the work week!
Oh wow, some awareness! It just doesn’t matter till it hits the bottom line of course. Don’t confuse it with compassion.
Congratulations America, the 1% is nearly done taking all your money. I'm excited to see what comes next.
A suggestion . . .

Ah yes, American here. Me too. Probably my death. Stay tuned!
I wasn't able to start saving for retirement until my 30s, so I've joked for a while that my retirement plan is to die early. It's not so much of a joke anymore.
late 40's here, there are no savings. i hope i will be able to work until i die like my mother did.
yeah, I'm with you-- I'm coming up on retirement age. The choice is to go along with our abysmal system or topple it and topple my life savings/social security and a lifetime of being thrifty.
Try to take out an oligarch on the way out with friends.
There's still plenty of money left to take. First they will take all the money people have saved in social security, basically zeroing everyone's retirement funds. Then they will transfer public infrastructure to private companies basically giving out things bought with everyone's taxes. And finally they will force everyone to work themselves to death for slave wage basically taking away your freedom.
This article is shit. It's just long form advertising. Don't trust any of it.
Halfway through it starts hawking gold and subscriptions to Masterworks 😂
I was skimming and thought I jumped to a paid advertisement and missed the change.
Apparently not.
Fox News: Wow! Lord God President of all the Universe His Holyness Emperor Trump has gifted us with such an AMAZING economy that people have SO MUCH money they can't decide what to spend it on!! They get decision paralysis and end up buying nothing! We're so winning!! Thank you Lord God Emperor Master of the Universe King Trump!
"According to the Federal Reserve Bank of Minneapolis (9), $100 in 2026 had the same purchasing power as just $11.74 did in 1970."
Now I'm no economist, but it seems like there's a way to fix this problem.
"We've tried bleeding them dry for more and more and it isn't working we're just completely out of ideas!"
Also gotta love how the article says these companies are "lowering prices" and then in the same sentence talks about them selling smaller package sizes for less money.
THAT IS NOT LOWERING PRICES THAT IS GIVING YOU LESS AT A TIME FOR LESS MONEY AT A TIME TO LOWER PRICES THE PRICE PER OUNCE HAS TO DECREASE
Note: CPI was changed in the 90s with the not so subtle goal of changing the metrics to level out and reduce annually reported inflation, in part to reduce COLA (https://www.ssa.gov/history/reports/boskinrpt.html). It sure made politicians look smart and all the charts to go up! This sounds somewhat reasonable until someone who knows about exponential growth enters the chat, points to the Rule of 69/70/72, and notes that the ~2% under reporting of inflation for the past ~30 years means we've silently lost almost half our wealth. This will get exponentially worse yet few are talking about it.
Point being, $100 in 2026 is closer to $6 in 1970.
Median family income in 1970 was $9,870. Median family income in 2026 is NOT $164,500. Not even close.
If minimum wage kept up with those figures we would have $23.50 minimum wage today.
Eh the federal (in the us) min wage in 76 was $2 so by that logic yeah. But if we look at the average wage (less income disparity then, still there but not crazy yet) in 1970 being $8,510 then doing the math (assuming a 40 hour work week) that is more like $4 an hour so the average person would need to make $47 an hour in 2026.
And the average wage earned in the us of a in 2024 is...... $63,293. Doing the same math gets us $30.43 an hour. And that is with massive shifts in the gap between wages that are now prevalent.
Everyone focuses on the min wage part (as they think that is the easiest way to address this issue) but not the over all issues of labor not being valued at an amount that makes an economy work long term. The underlying issue is that companies see cutting costs as the best way to increase profits and payroll is the largest line item on almost every balance sheet. So upping the min wage helps but ultimately these places will still cut where they can (less staff, more work per staff, replacing staff with LLMs, etc.) and the issue will continue. In times past the min wage was there as a safety net, but most could expect more for their work, now min wage is more commonly what people expect to earn. Mix in under employment, unemployment that lasts long enough people don't count as unemployed anymore, and people having multiple part time jobs vs full time and you have a massive long term issue.
The question the companies that rely in any way on selling things to people should be asking is; "Who can buy their products?" not "we expect to sell more every quarter then last quarter at ever increasing prices, why are you all looking at us like that?"
This is the important part to anchor the statement.
Its meaningless to say $11.74 then and $100 now without some reference to what it takes to earn that same $11.74 and $100.
edit: unless you've just been hoarding all your wealth as cash since 1970, in which case you got fucked.
Hmm, better cut their taxes some more.
Yeah, we need the government to step in and hold companies accountable
And tax the shit out of assets to decrease the relative value of investments to actually generating value through work. Rebalance the economic incentives away from maximizing margins towards maximizing volume.
I agree! We need to bring back the new deal
What exactly is the boundary between the United States Government and the companies?
They're the same entity.
And as long as this government exists, those companies will exist and those companies will continue what they are doing.
Then we need a new government that doesn’t work for mega corporations
Yes. Just like they did in 2008 to the big banks... oh wait.
Ha, this is funny since all of those companies have lost the plot lately on pricing/value. Some (like Kraft) have also made mistakes like moving production state side and then damaged their ability to operate world wide, others (like McDonald's) have cut every corner on quality while upping their prices and spending like drunk sailors on app and ads. And they all have made choices (like Whirlpool) to make their products last less time thinking we are made of appliance every 3 years money.
This is the one silver lining on the economic collapse, there is a chance that these badly ran companies might just face consequences. Like there is still demand for product, but with wages being what they are no one is jumping on $20 big mac meals, $3 boxes of kraft dinner or $1800 fridges (that will break just after the warranty).
In a working economy these actors would find themselves out of business, instead they have lived off our credit for years selling things we can't afford. It was always going to come crashing down, but we are finally at the point that they are not denying it and now working to move blame.
Accountability will not follow unless we organize for the day after the collapse.
I don't think it's that simple. Whether one likes it or not, the economy will always recover, particularly because crashes, like trump's, are engineered. Crashes kill all competition, deeply consolidating the market as only the biggest can survive (or recieve bailouts)
These companies are the result of the consolidation you describe already, and unlike before they are failing before the crash. Think about Kraft for example, who are their big competitor? Who would Kraft merge with to create a bigger Kraft? Would anyone notice a difference? The chances of a bailout are also slim this time, outside of a few select small sycophants. We are not looking at the old cycle of bullshit, but the point where the ability of consumers to spend is crippled.
You are right that an economy will always "recover". The issue here is (as shown in the article above) across all industries and based in the result of a long long process of devaluing wage rates. So I do think there will be a recovery but I don't think that it will be bailouts and mergers this time. I think the "winners" here will be the cheaper providers and smaller companies as the world transitions into poorer times.
Guess you guys shouldn't have funded Trump's campaign, huh?
Remember when McDonalds let a felon rapist use one of their locations for a photo op?
The one that paralleled Mussolini's "working class man" propaganda photo? Yup!

That's an insult to Mussolini.
Good.
Whirlpool CEO can fuck the fuck off after this douchecanoe pushed for washing machine tariffs and then proceeded to raise their own prices raised to match the competitors resulting in all washers AND dryers by over a hundred dollars on average. And then they also proceed to layoff factory workers while complaining that people weren't buying US made goods.
Terrible products, over priced, paid to install a moron as president who fucks up the economy. Yeah, no pity for these fucks, go under.
You, our good Lemmy dweller, took the words right out of our mouth 🙇🏻♀️
Ready? How? It is like telling someone locked in a prison cell to get ready for a fire.
Nothing a guillotine can’t fix
Come on, this isn't a realistic solution. ONE guillotine? It would have to be running day and night to make a difference, and it would be down for maintenance half the time. We have captured bolt pistols like in No Country for Old Men now. We don't need to use 18th century technology.
Fine industrial size woodchipper BUT we get to use the guillotine symbolically for the special guests
Good to hear you say "industrial size"-- getting too small of a chipper is a classic mistake.
ONE guillotine? It would have to be running day and night to make a difference
Stop... i can only get so erect
"We have priced a good portion of the population out of being our customers. If there was only something we could do. I know! Let's ask the shareholders. They seem like a reasonable bunch who would not expect continued yearly profits for all eternity." /s
"We've tried nothing and we're all out of ideas."
More like "We've tried extinguishing a fire with gasoline and wondering why it didn't work" lol
Make your slop cheaper or fuck off. These people really are stupid. They are greedy and lack basic positive human traits but otherwise they are just stupid.
There is one more option. Make it better for the same price.
Bwahahahha they will never do that, nevermind
Line must go up
Line will eventually go down
who'd have thunk people drowning in debt wouldn't have any money for luxuries. WHO COULD HAVE SEEN THIS COMING?!
That's an advertisement, not financial analysis.
Who would have thought that if all wealth is in the hands of a few billionaires, there is no wealth left for all that can be milked...
They'll say the same thing in the 2030s after replacing all of their workers with AI once they realize that those workers are also consumers 🤯.
If you had to choose between
-
infinite money, or
-
money being worthless, and you having an army of robots that would do whatever you want and no one else having anything,
which would you choose?
Because I think that a lot of people are thinking that it's a question of JUST infinite money versus worthless money, and no, there's another part to this.
It involves breaking the system and worldwide universal slavery for literally everyone except the people at the top.
At the samentime there are people attending sports events where ticket is $5000, with stadiums full. Money is here it is only unfairly distributed.
Have they tried 100 year loans on a Big Mac?
The best indicator other than waffle house on how ducked this country is gonna be in a year or two
When we can't afford waffle house then we're going to be really fucked
Turns out when a bunch of bigots and corporations throw their weight in behind a low IQ felon rapist to make a profit or simply to hurt others, things go off the rails for everyone.
Won’t someone please think of the innocent billion dollar company?
It was kind of a dead giveaway when he wouldn’t even eat his own food on video
Kraft changed their macaroni ingredients and now it tastes like plastic, so...
BTW if you are in inland SoCal Stater Bros. has a brand call pastaroni which is pretty good.
Buy a bucket of good quality cheese powder. You’ll make it the same way except you have to measure out the cheese powder instead of opening a packet.
You have a recommended source for it?
Same question for pasta - I've noticed just plain pasta seems to be like a lot - even the store brand - when I'm at stores, and that's for one little box. I'm assuming that can be bought in bulk and save a lot of $$$. If properly stored, that should have a long shelf life, too.
I like King Arthur brand cheese powder. It’s not yellow but ¯\_(ツ)_/¯
You can just buy cheese powder??
Yes
Even the fancy ones with the liquid non powder cheese pouch?
Never had those, but the fun shapes one was always my favorite since I was a kid and now even those taste like the plastic the regular ones tasted like for awhile.
I've really been liking Goodles. Reminds me of what Kraft used to taste like.
so that means they'll drop prices right?....right?
Lays just had a company-wide price decrease because a couple of years ago, they decided to get really greedy, and crank up their prices. Really stupid, since you can buy a big bag of first rate chips from Aldi for less than $2.
They finally decreased their prices - but only AFTER losing a couple of billion bucks, the dickheads. They tried so hard to fuck the consumer as hard as they could, and rather than just take it, the consumer walked away.
Not only did they raise prices they decreased the amount of product in the packages. One of their greedy stupid 'leaders' thought we would all just love that combination.
Enshittification: MAKE. IT. SHITTY!
The article does actually say yes (as well as shrinkflating products)
Wait so trump's 5D chess economics plan to lower prices by making everyone run out of money is working!
McDonald's is selling paper thin beef and costs more than your local cafe here in Australia
The standard has dropped a lot. I only go on a long car trip
I don't even go when on a long car trip anymore. I'd rather pay just as much for a less american chain
hell even McDonald's closes the doors after 11pm now and is drive through only. the last thing they had going for them was that they had a washroom available when driving at night. now I'll still go to the less american chain since there's literally nothing McDonald's offers that they don't. well, nothing good anyways
Funny you mention that, the last time I was driving late (I think about 1am) I needed to fill up on the way home and noticed people pulling up at the McDonalds across the parking lot even though the drive trough was on the other side of the building. I watched people get out, try the doors, shrug and then put their asses to the window and do their business. The funny part to me is that there is staff in side and these people had to know it, but did it anyway.
So in a way they do have facilities after 11pm.
ngl I considered pissing in the trees. "open 24 hours" means open 24 hours, not "open during the day but you can order pick up at night". I'd had to piss for the last half an hour and I'd already given my body the ok to prepare to relieve itself in a few minutes when I got off the highway. that was a hard one to hold in.
I have absolutely no problem with businesses having schedules. I absolutely have a problem with false advertising and lies.
In this case I think it was done with spite, since the gas station I was at had the buzzer system bathrooms I believe. But I do get why its bull shit to be "open" but then not be open. Its odd since as I get older there seems to be less and less 24 hour things, something that I did not think would be my "yells at cloud" thing would be getting a hot meal at 3 am.
For me, it's generally when I travel up to hotham (a 4hour trip). As I need fuel too and always tend to stop at the same servo.
But yeah, I remember my first big Mac probably 25 years ago. It was incredible. Now it's a limited edition
no trump. ya trumpin think? the average conusmer has been getting trumped up his trump hole and the fed no longer puts out accurate numbers on anything.
Big deal. Theyll just pull another 'too big to fail'.
Unintentionally this would make Americans healthy again. Going back to times where everyone cooked their food.
No. When the McDonalds and Krafts of the country start running out of money so do the grocery stores you buy food to cook from.
Prices will increase across the board. Especially since the dickhead in charge started a war that affected fertilizer and fuel prices.
It takes a little while for the other shoe to drop sometimes, but it sure fucking will. Count on it.
I’m not following. If Mcdy’s goes bankrupt, people still have to eat so they’ll go to grocery stores instead of restaurants. They won’t be paying a markup. Stores will expand because there will be more demand on the consumer side.
I cook almost all of our meals at home. I use mainly whole ingredients and minimal hyper processed foods. Outside of tips or service fees associated with eating takeout or dining out, there are lots of non fast food options nearby that cost us less per meal than many of my go to meals. Quality produce (when you can find it) has become particularly expensive.
Even if that weren't the case, people that don't know how to cook as it is aren't going to be well versed in replacing more expensive ingredients with cheaper ones. These people are less likely to start using healthier, whole ingredients at home, and will instead opt for cheap, highly processed options like skillet noodle meals and frozen prepared foods.
This situation is no joke. I am honestly on edge about just how dire this could get.