XPost: or.politics, alt.fan.rush-limbaugh, talk.politics.guns   
   XPost: dfw.politics, houston.politics   
   From: nozama@facebook.com   
      
   On 25 Sep 2024, Mittens Romney  posted some   
   news:vd1ad6$3nr9o$8@dont-email.me:   
      
   > Baxter wrote:   
   >> https://image.caglecartoons   
   >   
   > The reality of CmmmieLa:   
   >   
   > You knew their Marxist agenda was not going to stop with drug prices,   
   >   
   > Hell no, they want to control ALL our food too!   
   >   
   > Next stop on the clown car - Venezuela, USA:   
   >   
   > https://x.com/RobertMSterling/status/1824840348008391127   
   >   
   > @RobertMSterling   
   > 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...????   
      
   We're from the government and we're here to help!   
      
   Modern Democrats are emotional social media fed trainwrecks.  If enough   
   American voters had functional brains and used them, they could see this.   
   Democrats have done more to destroy the USA than any activist group in the   
   country.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)