When a lifelong Democrat, from an iconic Democrat family, who tried to run as a Democrat, and who’s running mate was a Democrat, warns you about the dangers of voting for the Democrat in this election, you should probably listen.
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
Welcome to the race, Tim Walz!
Let’s make sure America knows who you are.
You helped ignite the George Floyd riots, the worst the country had seen in decades. While Minneapolis burned, you stalled on deploying the National Guard for an entire day, blaming the city for not submitting the right paperwork. You let your daughter leak the Guard's deployment plans online, so that rioters would know how long they had to loot the city with impunity. Minneapolis is a war zone because of you.
Just days after the attempted murder of Donald Trump, you called him and his supporters "fascists," egging on the same rhetoric that led to him being shot in the first place.
You have overseen some of the most radical youth trans surgery laws in the country. Under your leadership teenagers can get their breast chopped off and get sterilized, and your government calls it “healthcare.”
You have the most radical abortion laws in the country. Zero limits. Every year 5-6 babies are BORN ALIVE and then murdered “legally” under laws you support.
On immigration, you famously said you wanted to provide a “ladder” so invaders can come over Trump’s wall. You are a radical open border zealot.
You oversaw the single worst fraud of the Covid era, the Feeding Our Future case. Thanks to ineptitude at your Department of Education, criminals stole $250 million of taxpayer dollars to spend on luxury cars, houses, and vacations.
Also during Covid, you approved $500 million in "hero pay" for frontline workers, only to have 40% of that money go to people who were ineligible or, in many cases, literally deceased.
In the House, you were Pelosi’s sidekick and did whatever the Democrats demanded.
You will try and disguise yourself as a folksy midwestern moderate. In reality, you are a white male version of Kamala Harris. Radical. Inept. Undeserving to be in leadership.
Make this go viral. Ruin their honeymoon. Let’s educate millions because the media will not.
Biden's announcement today does nothing to secure the border.
It actually AUTHORIZES 2,500 aliens to cross illegally & provides an enticement that will attract even more illegal immigrants.
He's just trying to hoodwink Americans to think he's taking action before the election.
BREAKING: Arkansas Gov. Sarah Huckabee is the first female governor to stand against Biden’s Title IX changes and issue an executive order that defines sex-based terms like 'female’ and 'woman.’