“What happens when a few large grocery store chains, such as Kroger, dominate an industry? They can impose high food costs on Americans while making record profits. To break up large firms and cut costs, we need to improve our antitrust laws.” – Sen. Elizabeth Warren (D-MA)
As Joe Lancaster noted at Reason: “This was not a new issue for the senator: in December, she wrote to Kroger, Albertsons, and Publix, chastising the supermarket corporations for ‘passing prices on to customers to retain their economic advantages’ and ‘taking advantage of inflation to add further burdens.’” Gandhi energy, bro.
As the note at Reason points out, the grocery retail industry has shallow profit margins compared to most industries. And with the corporate profit melt-up over the past year, why shouldn’t grocery chains share in some of the abundances? Indeed not because to a professional bankruptcy law professor, the only business that looks any good is a bankrupt one? Pass the steak.
Senator Karen should speak with the manager to learn about the supply chain costs grocery stores face and understand how and why they set their prices. How do market participants know the right price to charge or pay for a good?
“This is the rub: No one knows the price. No individual can know because the computation must include the perspectives of every individual. And it’s not enough to include what individuals say they’d pay for anything (because no one knows the price). It would be preferable if you evaluated how much money they spend. If people are coerced to buy vaccines, the price is more inaccurate because those peoples’ perspectives are lost and replaced by the coercer. The wrong amount of college will be produced. It is why (Senator Karen) always fails.” – Big Oomp