You and Harris are missing the point if you think this is about grocery stores and their margins. It's not. It's about consolidation in the corporate food industry, which is heavily subsidized by the government. This is essentially an antitrust issue. The American food supply has been significantly influenced by federal agriculture policy and subsidies. Various payment and revenue supports have shaped what and how much American farmers grow. The most heavily subsidized and produced crops—corn, soy, and wheat—are key ingredients in highly processed foods and are consumed at an ever-growing rate. Fruits and vegetables, on the other hand, receive very few subsidies. Our taxes are paying for cheap raw ingredients for many of the ultraprocessed foods that spiked in price recently, which means the government has every right to attempt to control those prices. If you want true capitalism then there should be no government intervention at all and that is not the case in most industries in the U.S.
Corporate consolidation in the meat processing industry has played a larger role by enabling a small number of companies to raise their prices by more than their costs. Four large companies control 55% to 85% of the beef, chicken, and poultry markets, including Tyson Foods and JBS. Several of the biggest meat companies have collectively paid out hundreds of millions of dollars to settle lawsuits accusing them of fixing prices for chicken, beef and pork, but they didn’t admit any wrongdoing. You can read between the lines that yes they were and are fixing prices.
It is clearly the case that corporate profits picked up sharply during the pandemic. And throughout 2022 and much of 2023, companies regularly talked about how much new pricing power they had, and how they were trying to keep customers buying more “premium products” at heftier price points.
The bigger issue is that over the past few decades major sectors of the American economy have evolved into a bunch of oligopolies where a few big players control the market and while they are not monopolies, exert so much power over prices that consumers have as much power as serfs in medieval Europe. Four companies—ADM, Cargill, Bunge and Louis Dreyfus—control 70% of global wheat, corn and soy production. Four airlines—American, United, Delta and Southwest—control 68% of domestic air travel. And on and on. Consumers have the illusion of choice but not enough to exert pressure on prices. As a start, Congress needs to update and actually enforce antitrust laws.
Pomp, I respect your views on crypto but lots of incorrect points in here.
1) Private companies maximize profits and seek growth. Normally, market forces keep that in check, but sometimes their prioritization of corporation is ignorant of public needs. Price caps are a tool governments use in unique times to prevent runaway prices. WWII, natural gas in the late 70s, gasoline during natural disasters, telecoms/utility price caps, etc. Yes, the grocery supply chains will take a hit on profits, but they will be fine (they won't go bankrupt) and the prioritization of the public is considered more important at this time.
2) $25k is for first time buyers. This does not bring prices up on all homes by $25k. This gives a boost to the entry level home segment by allowing a few more players to enter and participate. The middle and upper end of the market will remain untouched. The call for 3 million homes is an move to build, build, build. But objectively, real estate has been won by the upper class and PE firms in recent years. The $25k won't affect them much, but just help the average, young American family wanting to build community and buy an entry level home for the first time. To call it a handout is to be ignorant of the reality of the life they have to live today.
Isn’t it incredible that this stuff isn’t obvious?
The works of Milton Friedman and/or Thomas Sowell(preferably both as Sowell is second to non as a social philosopher) should be taught in every classroom across the western world.
If I was a US citizen I would be very worried that the (out to destroy America)establishment just might be able to place a totally unqualified cackling Indian/jamacan/african/“insert the next race to placate for” in to the White House.
[when ww3 breaks out let’s hope there’s no sorority get togethers that weekend]
I appreciate you walking the political line given what you are doing here. however, do you think the side you called out for not taking econ 101 and with the ability to these proposals right now will change its tune and/or take said class???? C'mon. That will never happen and pretty much everyone knows it. So based on what would be best in regard to the post points in one direction. I totally get why you don't come right out and say it which would possibly alienate a large portion of readers. However, for a lot of people with platforms it might be time to at least start inching in that direction. There are unquestionably only 2 very distinct paths with 2 very different outcomes
Trump 2024 for better economic situation and everything from what Biden /Harris Leadership in 4 years in White House are they like sleeping giants. Kamala candidacy is for the Leftist, and illegal people by giving their attentions who are now staying inside America and will be(e) "as in flying" voting for her .She is not running for the American people to be united as one nation and even for the American dream will be back as great as before. Kamala campaigning as if she is not working in the Whitehouse meaning she is not working for the America , she is just talking and talking then follow what Trump AGENDA.
In Econ 101, we also discussed the price impact of competition. Competition is a critical factor in all markets, especially those in the United States. Almost every major US market is controlled by ologopolies or worse. Try to buy eyeglasses from a company not controlled by EssilorLuxottica. Similar issues exist in most major product sectors:
"In the U.S. food market, significant lack of competition is evident in several sectors:
- **Meat Processing**: Four companies dominate 85% of the beef market, 54% of poultry, and 70% of pork. This concentration limits farmers' choices and increases prices for consumers, as these processors control critical supply chains[3][4].
- **General Food Production**: The top four firms control over 60% of markets for various products, including pork, coffee, and bread. This oligopolistic structure allows companies to set prices with less competitive pressure[4].
Such consolidation has raised concerns about price manipulation and reduced options for both farmers and consumers[1][4].
Pomp, great article. I appreciate the truthful criticism of Harris. However, you really should announce your support of Trump and explain why you do. The Democrat Party has been the party of slavery, segregation and racism for almost 2 centuries. Today they are also the party of corruption, censorship and fascism, and the country will be forever harmed by another 4 years of these clowns. Most of us know that you believe that Trump would be a vastly better choice, so show some courage and just say it!
It’s interesting how both the DNC and RNC rarely, if ever, discuss our financial system or the role of central banks. Makes you wonder why, doesn’t it? 🤔
You and Harris are missing the point if you think this is about grocery stores and their margins. It's not. It's about consolidation in the corporate food industry, which is heavily subsidized by the government. This is essentially an antitrust issue. The American food supply has been significantly influenced by federal agriculture policy and subsidies. Various payment and revenue supports have shaped what and how much American farmers grow. The most heavily subsidized and produced crops—corn, soy, and wheat—are key ingredients in highly processed foods and are consumed at an ever-growing rate. Fruits and vegetables, on the other hand, receive very few subsidies. Our taxes are paying for cheap raw ingredients for many of the ultraprocessed foods that spiked in price recently, which means the government has every right to attempt to control those prices. If you want true capitalism then there should be no government intervention at all and that is not the case in most industries in the U.S.
Corporate consolidation in the meat processing industry has played a larger role by enabling a small number of companies to raise their prices by more than their costs. Four large companies control 55% to 85% of the beef, chicken, and poultry markets, including Tyson Foods and JBS. Several of the biggest meat companies have collectively paid out hundreds of millions of dollars to settle lawsuits accusing them of fixing prices for chicken, beef and pork, but they didn’t admit any wrongdoing. You can read between the lines that yes they were and are fixing prices.
It is clearly the case that corporate profits picked up sharply during the pandemic. And throughout 2022 and much of 2023, companies regularly talked about how much new pricing power they had, and how they were trying to keep customers buying more “premium products” at heftier price points.
The bigger issue is that over the past few decades major sectors of the American economy have evolved into a bunch of oligopolies where a few big players control the market and while they are not monopolies, exert so much power over prices that consumers have as much power as serfs in medieval Europe. Four companies—ADM, Cargill, Bunge and Louis Dreyfus—control 70% of global wheat, corn and soy production. Four airlines—American, United, Delta and Southwest—control 68% of domestic air travel. And on and on. Consumers have the illusion of choice but not enough to exert pressure on prices. As a start, Congress needs to update and actually enforce antitrust laws.
Well said!
This
Pomp, I respect your views on crypto but lots of incorrect points in here.
1) Private companies maximize profits and seek growth. Normally, market forces keep that in check, but sometimes their prioritization of corporation is ignorant of public needs. Price caps are a tool governments use in unique times to prevent runaway prices. WWII, natural gas in the late 70s, gasoline during natural disasters, telecoms/utility price caps, etc. Yes, the grocery supply chains will take a hit on profits, but they will be fine (they won't go bankrupt) and the prioritization of the public is considered more important at this time.
2) $25k is for first time buyers. This does not bring prices up on all homes by $25k. This gives a boost to the entry level home segment by allowing a few more players to enter and participate. The middle and upper end of the market will remain untouched. The call for 3 million homes is an move to build, build, build. But objectively, real estate has been won by the upper class and PE firms in recent years. The $25k won't affect them much, but just help the average, young American family wanting to build community and buy an entry level home for the first time. To call it a handout is to be ignorant of the reality of the life they have to live today.
Isn’t it incredible that this stuff isn’t obvious?
The works of Milton Friedman and/or Thomas Sowell(preferably both as Sowell is second to non as a social philosopher) should be taught in every classroom across the western world.
If I was a US citizen I would be very worried that the (out to destroy America)establishment just might be able to place a totally unqualified cackling Indian/jamacan/african/“insert the next race to placate for” in to the White House.
[when ww3 breaks out let’s hope there’s no sorority get togethers that weekend]
God help us all!!
I appreciate you walking the political line given what you are doing here. however, do you think the side you called out for not taking econ 101 and with the ability to these proposals right now will change its tune and/or take said class???? C'mon. That will never happen and pretty much everyone knows it. So based on what would be best in regard to the post points in one direction. I totally get why you don't come right out and say it which would possibly alienate a large portion of readers. However, for a lot of people with platforms it might be time to at least start inching in that direction. There are unquestionably only 2 very distinct paths with 2 very different outcomes
Trump 2024 for better economic situation and everything from what Biden /Harris Leadership in 4 years in White House are they like sleeping giants. Kamala candidacy is for the Leftist, and illegal people by giving their attentions who are now staying inside America and will be(e) "as in flying" voting for her .She is not running for the American people to be united as one nation and even for the American dream will be back as great as before. Kamala campaigning as if she is not working in the Whitehouse meaning she is not working for the America , she is just talking and talking then follow what Trump AGENDA.
In Econ 101, we also discussed the price impact of competition. Competition is a critical factor in all markets, especially those in the United States. Almost every major US market is controlled by ologopolies or worse. Try to buy eyeglasses from a company not controlled by EssilorLuxottica. Similar issues exist in most major product sectors:
"In the U.S. food market, significant lack of competition is evident in several sectors:
- **Meat Processing**: Four companies dominate 85% of the beef market, 54% of poultry, and 70% of pork. This concentration limits farmers' choices and increases prices for consumers, as these processors control critical supply chains[3][4].
- **General Food Production**: The top four firms control over 60% of markets for various products, including pork, coffee, and bread. This oligopolistic structure allows companies to set prices with less competitive pressure[4].
Such consolidation has raised concerns about price manipulation and reduced options for both farmers and consumers[1][4].
±[3].
Citations:
[1] What are some industries with little competition? : r/Entrepreneur https://www.reddit.com/r/Entrepreneur/comments/soy8j4/what_are_some_industries_with_little_competition/
[2] 5 Industries Without a Dominant Market Leader | Inc.com https://www.inc.com/graham-winfrey/5-industries-without-a-clear-market-leader.html
[3] Is Lack of Competition Strangling the U.S. Economy? https://hbr.org/2018/03/is-lack-of-competition-strangling-the-u-s-economy
[4] The 5 Industries Driving the U.S. Economy - Investopedia https://www.investopedia.com/articles/investing/042915/5-industries-driving-us-economy.asp
[5] Monopolies: How Limited Competition Affects Everyday Life https://upriseri.com/monopolies-limited-competition-affects-you/
[6] 7 Stocks That Are Monopolies (Virtually) - Financhill https://financhill.com/blog/investing/stocks-that-are-monopolies
[7] 10 Least Competitive Industries in the World - Yahoo Finance https://consent.yahoo.com/v2/collectConsent
[8] Top 10 Small Business Industries to Start in 2022 - Guidant Financial https://www.guidantfinancial.com/blog/top-10-small-business-industries/
Pomp, great article. I appreciate the truthful criticism of Harris. However, you really should announce your support of Trump and explain why you do. The Democrat Party has been the party of slavery, segregation and racism for almost 2 centuries. Today they are also the party of corruption, censorship and fascism, and the country will be forever harmed by another 4 years of these clowns. Most of us know that you believe that Trump would be a vastly better choice, so show some courage and just say it!
Well said Fred. It's not helpful for Pomp to keep trying to tide the fence.
It’s interesting how both the DNC and RNC rarely, if ever, discuss our financial system or the role of central banks. Makes you wonder why, doesn’t it? 🤔