Driving across South Dakota from Sioux Falls to Rapid City alone in the dead of night is so easy and peaceful. All you have to do is turn on cruise control, lock the wheel straight, turn on music, lay your chair back, set an alarm for 4.9 hours, take a nap, wake up in Rapid.
Stephen Colbert in 2016: Obamacare sucks.
Jon Stewart in 2013: Blasts Obamacare lies.
Jimmy Kimmel in 2014: Obamacare is terrible.
Democrats want you to forget that even Hollywood knew Obamacare was a scam from the start.
People need to stop overreacting about Kamala’s plan to reduce food inflation, as if it would lead to communism, mass starvation, and the end of America.
I worked in M&A in the food industry. Here’s a step-by-step summary of what would actually happen:
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.
Hey wait a second
The University of South Dakota and USD Department of Athletics unveiled a new secondary logo for the South Dakota Coyotes Thursday evening.
https://t.co/dOhudVwZlk
You might think you’re a badass, but you’re not 62 year old South Dakota rancher Ray Chanley riding a bronc with his god damn reading glasses on badass
Barack Obama qualified for the primary with 534 signatures. The prosecutor discovered 100 to 200 signatures were forged. Barack Obama was never qualified for the primary in Indiana.
The Democrat Party Is Telling You Right To Your Face Who They Represent. It Isn’t You
“You are right that that has been the Democratic strategy for 30 years maybe and it has failed to deliver for the people we care about most, THE UNDOCUMENTED AMERICANS THAT ARE IN THIS COUNTRY”
The typical salary required nationwide for homeownership is now $106,500 — a 61% increase from the $59,000 required just four years ago, according to Zillow.