There is like two links in that “grocery chains”.
What?
Kroger has 2750 grocery stores. 912 million divided by 2750 is 0.3316 million in profit per store
or
each store they own generates $331,636 in profits a quarter.
This is 2.7% of their overall revenue.
What profit margin is acceptable? 0.1%? 0.0%?
I would say something around 10 to 15% would be an appropriate profit margin. But they would need to not try and get around that just by boosting executive pay. Now if they give the workers themselves better pay…
10-15% would be 3.7 times higher than what they have been making.
So they should have made 3.38 billion per quarter, instead of .912 billion.
Biden takes aim at Palestinian children over objections of humanity.
Old man wags finger
Government grocery stores would solve this and food deserts…
What are you, some kind of Communist? You can’t have government run retail outlets. It would be inefficient! It would prevent innovation! It would desaturate the market! It would cause millions of farmers to go bankrupt overnight! The employees would all be rapists and arsonists and unionists, while the managers would be bloated government bureaucrats who only care about their cushy government jobs!
You would cause famine and poverty across the entire nation. It would be the worst thing to happen to the country since the Postal Service!!!
I feel like I’ve heard a lot of bias placed against the idea of government in the US as something that’s the source of problems in the country, where private organizations are usually seen as being the solution and not at all related somehow. It doesn’t always strike the mark when criticizing private organizations… people will even jump to the defense of billionaires. Agree that mentioning government grocery stores would result in something like “what you want the government to run groceries? they can’t do anything right, why would you want them to do that?”
I mean when you have one of two major political parties who are dedicated to making the government suck, it’s not surprising that the government sometimes sucks. And when you have a lot of low information (or bad information) people, it’s not surprising that they don’t connect those dots.
Republicans are an existential problem for the United States.
It certainly is NOT a conservative problem. Both republicans and democrats behave this way.
I’ll remind you of what Biden said to billionaires behind closed doors during his presidential campaign: “Nothing will fundamentally change.”
“small enough to drown in the bath tub” is a republican pledge
But then the government would have to remedy the surplus of food by implementing food banks. Then markets would crash because everyone would go to food banks instead of grocery stores. Then money would be worthless and the government would have to step in and offer some type of work for rations program. And if that’s successful, it would spread to other industries for furniture and other goods. Is Biden going full Kropotkin?
Based and Breadpilled.
Palm the saffron and pecorino romano
I already palm my peckerino pretty much daily.
This is the best summary I could come up with:
President Biden, whose approval rating has suffered amid high inflation, is beginning to pressure large grocery chains to slash food prices for American consumers, accusing the stores of reaping excess profits and ripping off shoppers.
Economic research suggests the cost of eggs, milk and other staples — which consumers buy far more frequently than big-ticket items like furniture or electronics — play an outsized role in shaping Americans’ views of inflation.
“It’s hard to figure out what the short-term policy response is in this situation,” said Bharat Ramamurti, a former economic aide to Mr. Biden and an author of a report on grocery-price inflation that will be published on Friday from the progressive Groundwork Collaborative in Washington.
A new analysis from the White House Council of Economic Advisers suggests that elevated profit margins among large grocery retailers could be contributing to the stubbornly high price of food on store shelves.
The analysis, which relies on Census Quarterly Financial Reports data, found that food and beverage stores have increased their margins by about 2 percentage points since the eve of the pandemic, reaching their highest level in two decades.
Researchers from the Federal Reserve Bank of Kansas City found last year that strong job growth in the U.S. economy, and the wage gains associated with a tight labor market, were key contributors to grocery-price increases.
The original article contains 1,165 words, the summary contains 224 words. Saved 81%. I’m a bot and I’m open source!
Must be an election year
Yeah didn’t you hear? We’re supposed to magically get a national high speed rail network.
Kinda like that one Obama said he was gonna do a decade ago.
Man I wonder what happened to that.
republicans
Eggs are again steadily rising in price. Wal-Mart “great value” prices isn’t all that ‘great’ to begin with, with most of it’s products.
But can we stop calling things inflation? Call it for what it really has been - G-R-E-E-D
Jobs are starting to dry up in some industries because interest rates are so high that larger companies can no longer borrow cheaply to take a chance on side projects. The rates are high to combat this “inflation”, and of course it won’t work, because we aren’t seeing real inflation. We’re just seeing companies charging more because every industry is now an oligarchy. It’s a bit of a death spiral.
Greedflation
I call it increasing motivation to start fires.
Let me preach about the holy sites known as Costco stores.
Also look for locally sourced eggs and meat, dairy, etc. You can probably find some small farms that sell direct to consumer.
Also look for locally sourced eggs and meat, dairy, etc. You can probably find some small farms that sell direct to consumer.
I have yet to find one that was not substantially more expensive than any local supermarket.
I guess it depends on where you are and what you need. I’m in an area surrounded by farms and agriculture. We didnt do a csa this year but we have done them in the past. My wife found a farm not far from us that let’s you order online and then go pick it up on the day they designate.
As far as prices. Depending on the product, I’m happy to pay a bit more for meat, milk, etc because you get a better quality product plus you really are supporting your local community. You can also look for farmers markets that I see all over the damn place several times a year.
Considering this is about eggs in supermarkets being too expensive for many people, I don’t know that telling people how to pay even more for eggs is the best advice.
Where did I say that people had to pay more? I mentioned it as a me thing.
Oh and I see this about eggs being too expensive but the last time I checked, they went up but they aren’t actually out of reach for most people. In fact, eggs are only as cheap as they are because of the way we raise and process chickens and their eggs. Eggs from chickens that are raised in better conditions are not only tastier, they don’t need refrigeration and will last a lot longer than store bought (assuming they haven’t been washed).
Here is an article I literally just found because I was curious about the highs and lows. I haven’t bought eggs in a long time. A couple of years ago we were flooded by free ones from a neighbor and now my wife usually gets them from a local farm.
Large farms have economies of scale the small ones can’t match. I raised four pigs and had to sell them for $5 a pound just to break even, which is a lot more than pork chops at the grocery store.
Granted, they were an heirloom breed and at least 5x better than the dry pink things most hog farmers raise, but even if I had 40 pigs I don’t think I could match that price.
Costco is great… But not everything works best when bought in bulk, and not everything freezes well. Eggs for instance, most people probably aren’t going to go through 72 eggs in a reasonable timeframe. But it’s great for shelf stable items and things you use a lot of.
Yes it is cheaper per unit because you’re buying a larger quantity, but nearly every item is going to be $20+. This also assumes that you can afford the membership cost and the up front budget to be able to start to build that bulk stock, and that you have room for holding that bulk stock at home,
These are things that many people take for granted with so many more people living paycheck to paycheck now with increases in so many other costs now as well.
I bought a giant can of powdered eggs, i love it; you just have to add water, no dealing with shells or fluctuating prices
You can freeze eggs, but you have to separate them first
After hearing so many people singing their praises, I finally got a membership.
I used it precisely once. Their prices really were not very good on 90% of what I looked at. Plus they really encourage overconsumption.
Aldi ends up being more convenient and generally cheaper for groceries for me.
I’m not trying to yuck your yum, I just wanted to express an unimpressed opinion for other fencesitters.
If you’re not buying in bulk a lot, it’s not worth it. I’ve been tailgating on my mom’s membership for years and I don’t think I’d have one if it weren’t for that.
Costco has other services that definitely more than pay for the membership fee. I won’t go into detail because I have covered it in two other comments but optical is worth it alone, their pharmacy is usually a lot cheaper than elsewhere and their tires are top quality at the price of mid tier at other shops.
I’m not meaning to shill for Costco. I was a skeptic until I started comparing their offers to others and realized that for almost anything you need, Costco is usually the best option. My wife has been a member for something like 20+years, I’m more recent convert but now we check Costco first for things like appliances, coffee makers, etc.
I just want to throw out there that Costco also has some weirder, niche services that may be more worth it to individuals, based on their individual lifestyle, such as travel booking, where the packages tend to be really cheap. They also used to have a freaking MORTGAGE SERVICE until 2022, presumably shut down because of the rate increases (I really, really hope they open back up when rates go down again…)
The optical department is worth the price of admission alone. I recently bought 2 sets of glasses, 1 regular with transition and 1 sunglasses with the bells and the whistles. Costco doesn’t charge extra or up sell for most of the add-ons, they are just part of the package. I paid $287 for those 2 pairs before my insurance reimbursed me. Not even accounting for the higher end frames, I would have probably paid $500+ for those 2 with all of the extras.
The pharmacy is worth it as well if you have meds that can be expensive. They can’t get everything cheaper but the ones they do are way less expensive than most other places.
Also for those who happen to live in states where ABC doesn’t control everything, Costco has Kirkland brand vodka and other alcohol that I’ve heard great things about (my state is an ABC state). For the alcohol and maybe the
If you are willing and able to put out the extra cash to front load your food needs for awhile and are capable and willing to do the work to repack and freeze the large amount of food you get, you can find yourself with a lot of extra cash on hand with fewer visits to the store. These days Aldi, Lidl, Teeter, etc are mainly about little things we need day to day and Costco is our big shopping trip once every couple of weeks.
For individuals it’s not necessarily the best choice. As for their prices. You were likely comparing them 1:1 with elsewhere and didn’t account for the larger quantities being not only less per ounce than other stores but usually being a much much higher quality. You have to be smart about what you buy and if you buy the huge packs of sandwich meat, split it up and possibly freeze some, you’ll still end up saving money.
I do argue with your assessment about over consumption. The larger quantities are how they roll and they are most definitely cheaper than most other places for food. They do have a limited selection in brands but they make up for that with either larger quantities for the same or less than elsewhere or if the manufacturer won’t let them price cut too low, they have said manufacturer add more value than the same product elsewhere.
Costco was never meant to be used by individuals feeding themselves, but, if you have a family or roommates you can save a shit ton of money and if you spend enough annually you can spend an extra $30/year (iirc) that gives you 2% back in cash. Most years the cash back covers the upgrade cost but when we are ready to drop $2k+ on appliances or a new couch or a storage shed, that cashback will end up paying for more than the upgrade and whatever we buy will be a better deal than elsewhere.
Costco is like 15 miles from us, we do large shopping there but smaller trips and/or when Lidl, Aldi, Teeter, etc have deals, that’s where we go.
One last note and I’m done here. If you wear glasses, Costco optical is worth the price of admission alone. Before insurance refunded me, I paid just shy of $300 for 2 sets of glasses that would have run me $500+ elsewhere.
Agreed. But they do have a generous return policy - they will refund your membership fee if you just tell them you didn’t get value from it.
Inflation literally means prices going up. Calling it as greed isn’t useful, because greed can lead to both price increases or decreases, depending on the context. For example, firms that are greedy for market share can drive prices down (a phenomenon that American consumers have benefited from greatly, over decades).
No, inflation means purchasing power decreasing. Prices going up is an effect of that rate but they are not directly tied. Not everything goes up by a flat percentage every month or year.
The food price increases were never at the rate of inflation. The worst inflation the US saw was 9% in June 2022, but that was just for that month period.the overall rate for 2022 as a whole was 8%. For 2023 the annual inflation rate was back to almost normal, at 3.5%, just above the 3.2% long term inflation rate.
So even if we assume costs jumped immediately, if a price went up more than 9% it was bullshit.
Picking out one price rise, and calling it out because it’s higher than the average inflation rate, is silly. Since inflation is the rise in the price level, averaged over all goods, almost by definition there will be some prices rising by more than average (and others less than average).
In fact, it’s well known that inflation hits very unevenly across different prices in an economy. The 1970s inflationary episode, for example, started with gas prices going up due to the oil embargo, before bleeding through into other prices. There are entire fields of economics dedicated to looking at inflation through different segments of the economy, precisely because price rises can be so uneven.
The bigger issue is that inflation is a problem of monetary and fiscal policy, which means pointing to greed is totally beside the point. Inflation was quiescent during the 2010s, and it’s not like people and companies were magically non-greedy during that period.
I hate to be that guy, but actually it’s not just “greed” this time. There was millions of chickens that had to be culled due to a viral outbreak of Avian flu last season and we are just now seeing the effects of that. Don’t get me wrong greed does play a part, but the major contributing factor this time around for eggs is not greed, but the system rebounding from the outbreak. I know it’s trendy to say greed ruins everything (it can and does), but in this case it helps to have actual context to know what’s going on with the overall picture of things. The more you know, ya know.
https://www.gro-intelligence.com/insights/us-egg-prices-jump-amid-deadly-surge-in-avian-flu
Wonder what it will be next year.
I love to be this guy, but egg production barely dipped in comparison to the MASSIVE jumps in price. They pulled the exact same excuse a couple years back when prices jumped 6x or so. Tell me where on this chart was that price jump ever justified by anything other than greed: https://www.statista.com/statistics/196094/us-total-egg-production-since-2001/
Eggs are again steadily rising in price.
This one can still be pinned on poultry farming greed, but it’s not a pure price gouge.
Avian flu devastates California’s poultry farms as new wave of outbreaks roils industry
accusing the stores of reaping excess profits and ripping off shoppers.
Thanks now can you do this with all the other companies? All.
Also maybe do something with some teeth, not just empty words. Other consumer products are also outrageous but you literally die without food so this is something nobody can just do without.
The problem is he is in the wrong branch to fix it. This is a legislative issue as always. We need the legislative branch to write laws to punish companies for such things. The average person seems to blame the president for not doing the jobs of the Congresss and senators.
Publix absolutely has fleeced it’s customers since the pandemic.
It’s absolutely insane. I buy almost exactly the same stuff every week. I live alone and change things up with spices and preparation so I don’t mind always having the “same” stuff.
I went from 60-70 a week to $100-115 like overnight…
We dropped Publix and went to Kroger. Saved sooo much $$ for delivery right to our door. We just use Publix to buy fresh meat.
I loved doing grocery delivery but its always always worth to get produce and meat yourself.
Name one company that didn’t fleece it’s customers.
Aldi is a pretty good company, but it had a hard time keeping things in stock
Glad to hear Aldi is still doing solid by their customers. Haven’t lived by one for a while now, but they were always a good bet for affordable groceries.
More in the news: government official complains about matters within their jurisdiction.
You have to be some kind of moron to think it would be a good idea for the president to start dictating prices to grocery chains. Unfortunately Lemmy is largely populated by idiots and delusional fools, so I expect this observation to be unpopular.
You have to be some kind of moron
idiots and delusional fools
Do not respond to my comments again with personal attacks. If you do this again, or respond before fixing this comment, I will unfortunately have to report you to the community moderators.
Until you fix it, your comment is not worth addressing.
Ad hominem aside, TheSanSabaSongbird’s basic point, that price controls are an economically illiterate idea, is right. Prices are an economy’s way of signalling scarcity, so messing with that signal prevents the underlying problem from being solved. Inflation has to be tackled through monetary and fiscal policy; the alternative approach, micromanaging prices, is how you get to the economy of Argentina.
Products don’t become more scarce when fewer competitors exist in the market, but it nevertheless causes prices to rise. Not all price changes are signals for increased production and the market is rarely the ideal frictionless exchange that can respond to rising prices as presented in intro economics books.
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No, you don’t understand. The invisible hand is attached to the wrist of God. Prices are never manipulated and gouging is a good thing.
That is a big over simplification of how prices work. As another commenter pointed out, lack competition and a high barrier to entry can cause elevated prices even in the absence of scarcity. Price controls are found all over the economy and do not have the effects you allude to.
Price fixing works if you’re coming at it from two directions. Set the price for consumers and subsidize the producers. Setting the price for consumers ensures middle men aren’t taking absurd and unearned profits. Subsidizing will increase supply sufficiently that the artificially lowered price is not relevant. This ensures black markets don’t arise selling those goods at a markup.
Tying inflation to monetary policy is not useful. The primary lever of monetary policy is debt lent by the federal reserve to banks. Cheap debt causes an inflation in the prices of housing, socks, and other investments. It does not have a large effect on the consumption of eggs or milk. There’s no reason people’s consumption, and thus the supply of groceries, should be impacted by cheap debt.
The initial burst of inflation was caused by supply shocks due our fragile global shipping infrastructure, fuel prices, productivity decrease due to COVID-19, and other related issues. Subsequent inflation was companies raising prices because consumers would know inflation was happening and be less likely to shop around, greedflation in other words.
Read a history book sometime. It’s been done in the past.
I’m not sure why you’d advocate for it if you’ve actually read the history, it’s a terrible idea that has failed spectacularly in the past
mate half the food you eat is subsidized.
Talking about price controls which are not the same thing at all. Read about the Nixon shock, for example.
Just because you say it, doesn’t make it true.
Sure, instead it’s true based on a simple observation that the president isn’t using executive power to set an upper limit (price control) on the cost of groceries. A subsidy might reduce the starting price of something but a grocery store can still charge whatever they want for it. Which I’m pretty sure is the whole point of this thread?
Yeah, the relief doesn’t go to agribusiness and might stand a chance of benefiting individual humans, so both parties agree it’s always bad and they’ll never do it.
I know about a ton of food subsidies that we’re pretty useful, dunno about groceries though.
Any source?
I’m not talking about subsidies, I’m talking about the “president dictating prices”, i.e., price controls. Richard Nixon tried this in 1971, it was a failure and it set the stage for the stagflation of that decade.
Ranchers stopped shipping their cattle to market, farmers drowned their chickens, and consumers emptied the shelves of supermarkets.
https://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_nixongold.html
Why does Biden go after anything but minimum wage? Just because min wage isn’t a winning issue doesn’t make the problem go away.
Because he can then actually do something about it. This way politicians can just pretend they are on the side of the working class, while passing bills that only benefit the rich and hurt us.
Because only Congress can change the minimum wage. You know, the one half controlled by Republicans.
Sure, that is why. Poor Biden, he would help the working class, only if he could. Give president absolute power to use it when they need to help the rich, but when it helps the working class, all of a sudden they are powerless.
You remember the whole student loan forgiveness situation? The executive can only do things that the legislature has granted it power to do. And even then, the supreme court can show up and stop it for whatever reason they pull out of their ass.
Despite what Trump says, the President is not a king. The legislature is by the far the most powerful branch and is most to blame for the current situation. Blame them and especially the filibuster in the Senate.
Didn’t democrats vote in executive power for president during Obama administration so the president can act on their own? Kinda funny how democrats complain republicans are authoritarian, when they give presidents power of kings.
All presidents used executive power for lesser reasons. These are just PR games for naive voters.
No, that’s something Fox News made up. And I have no idea why you’re replying to a 3 week old comment.
Oh, but it’s easier to make corporations not be greedy?
Through the executive branch? Yes. That’s why Biden is helping people, not Republicans lmfao.
Ok you cocky asshole. Let’s see Biden make corporate America bend the knee. I’ll wait.
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Did he say anything about the Albertsons+Kroger merger that’s in the works? ‘Cause that’s not going to make things better and they are acting like it’s a done deal.
Yes there’s obviously a decent amount of hey look at me I’m electable going on. But if you take a nationwide chain or two head on and make them lower their prices, It’s not like the other chains can ignore it.
The whole point of capitalism is that supposed to be happening all the time. We’re just allowing all the big names to buy up all the small names until there’s no one else to keep them honest.
Through the magic of capitalism, removing competition will drive prices down! No further questions
Microeconomics: “Hey so we should like have a functioning econ-”
Macroecnomics: “Hahahahahahahahahahahahahahhahahaha no”
Corner the market then lower your prices. It’s basic economics!
Yes of course because large businesses are more efficient so obviously they can drop prices.
That’s good because they are. Sometimes they don’t even have the prices accurate I’ve actually had to report my local Target to the department of weights and measures because they don’t even have prices at the register that match what’s on the shelves.
