I did not work in M&A in the food industry, but I worked in logistics and controlled $1 billion worth of products every year and totally concur with this assessment by Robert Sterling (@RobertMSterling on X), who did. Here’s a step-by-step summary of what would actually happen if Kamala Harris imposed price controls:
1. The government announces that grocery retailers aren’t allowed to raise prices.
2. Grocery stores, which operate on 1-2% net margins, can’t survive if their suppliers raise prices. So, the government announces that food producers (Kraft Heinz, ConAgra, Tyson, Hormel, et. al.) also aren’t allowed to raise prices.
3. Not all grocery stores are created equal. Stores in lower-income areas make less money than those in higher-income areas, as the former disproportionately sell lower-margin prepackaged foods (“center of the store”) instead of higher-margin fresh products like meat (“perimeter of the store”). Because stores in lower-income areas aren’t able to cover overhead (remember, even if their wholesale costs are fixed, their labor, utilities, insurance, and other operating expenses aren’t fixed… yet), grocery chains start to shut them down. Food deserts in rural areas and in low-income urban areas alike become worse.
4. Meanwhile, margins for food producers are also quickly eroding. Their primary costs (ingredients, energy, and labor) aren’t fixed, and their shrinking gross profits leave less cash flow available to cover overhead, maintain facilities, and reinvest in additional production capacity.
5. Grocery chains, which have finite shelf space, start to repurpose their stores (those they didn’t have to shut down, I should say) to sell more non-price-controlled items—everything from nutrition supplements to kitchenware to apparel—and less price-controlled food products. Your local Kroger or Safeway starts to look and feel more like a Walmart.
6. Food producers stop making products with lower margins. Grocery chain start competing with each other to secure inventory. Since they can’t compete by offering stronger prices (remember, producers aren’t allowed to raise prices here, and, even if they could, grocery chains no longer have the gross profit to bear price increases), they compete on things like payment terms.
7. Small grocery chains start to shut down entirely or get sold to larger chains like Kroger. In addition to not being able to cover fixed costs, a major reason for this is because they can no longer reliably secure delivery of products, due to producers prioritizing sales to larger customers, which are able to leverage their stronger balance sheets to offer superior payment terms.
8. Smaller food producers—which typically sell via distributors, rather than directly to grocery chains—start to go out of business. Because these producers have an additional step their value chains, and because they have lower volumes over which to spread their fixed costs, their cost structure is inherently disadvantaged compared to major food producers. When grocery stores aren’t able to raise prices, cutting product costs becomes all the more important, and deprioritizing purchases from smaller producers is an easy way to do so.
9. As supply chains break down, lines start to form outside grocery stores every morning. Cities assign police officers to patrol store parking lots, and food producers draft contingency plans to assign armed escorts to delivery trucks.
10. The federal government announces a program to issue block grants for states to purchase and operate shuttered grocery stores. The USDA also seizes closed-down production facilities.
11. The government announces that prices for all key food costs—corn, wheat, cattle, energy, etc.—are also now fixed, to stop “profiteers” from gouging the now-government-operated food industry.
12. Shockingly, the government struggles to operate one of the most complex industries on the planet. The entire food supply chain starts imploding.
13. Communism, mass starvation, and the end of America quickly ensue.
Illegal immigration and deportation were agreed upon by most everyone before Trump. People change their minds with the direction of the wind nowadays.
Trump Derangement Syndrome is real, and it is pervasive. It's amazing that people can forget their morals and beliefs over one man. After 10 years I have come to the conclusion that the TV told them to.
Six illegal aliens, ranging from 13 to 21 years old, are accused of murdering 40-year-old Larisha Sharell Thompson, a mother of two children, in a random attack in Lancaster County, South Carolina.
There should be 6 death penalty cases. They will never be productive citizens of any country.
MSNBC does a hit piece on OAN and accuses it of reporting lies and being a puppet for MAGA. Is MSNBC a puppet for the left and have they told any lies?
Florida’s Health Department collaborated with scientists from the world-renowned Massachusetts Institute of Technology (MIT) to investigate surges in all-cause mortality rates in the state.
The researchers found that Pfizer’s mRNA “vaccine” in particular caused dramatic increases in deaths from all causes, including COVID-19, non-Covid, and cardiovascular.
Alarmingly, the study confirmed that Covid mRNA “vaccines” triggered a global surge in all-cause mortality rates.
MIT computer scientist, Steve Kirsch, the founder of the Vaccine Safety Research Foundation (VSRF) said, “The results were stunning.”
“This study is definitive and bulletproof,” he noted.
https://slaynews.com/news/florida-health-department-confirms-pfizer-vaccine-killed-470000-americans/