(TheLastPatriotNews.com) – While there can be no doubt that Americans are feeling the pain of inflation with almost every purchase of nearly every product or service, the longstanding reality is that as a percentage of income, Americans pay some of the lowest prices for groceries of anyone in the world.
And, one of the reasons Americans spend less on groceries is because large chain grocery stores – like Kroger, Safeway, Walmart, and several others – benefit from economies of scale that individual grocers can’t match. Those reduced acquisition and production costs are then passed on to the retail consumer through lower prices.
Honestly, this is Economics 101 and how American capitalism works.
Evidently, U.S. Senator Elizabeth Warren never took Economics 101, and we know she’s not a capitalist as she’s clearly a communist.
Case in point. In the video just a bit further down this post, Warren argues that antitrust laws should be used to break up grocery chains like Kroger because they are making record profits. She opines that they are making record profits because they “force” higher prices on shoppers.
The reality is that grocery chains like Kroger operate on some of the lowest profit margins of any industry in the United States.
Why are they seeing record profits? Duh! Because during the pandemic, Americans have been cooking and eating at home instead of going out to restaurants. That means grocery chains have been selling record-high amounts of groceries and therefore seeing higher profits even with very slim profit margins.
If you break up the grocery chains, prices will go up – not down.
Watch Warren in the video below, and then share your reaction by emailing [email protected]. Do you agree or disagree with her? Do you think she’s a capitalist or a communist? Thank you.
Krogers profit margin over the last year was 0.75%, according to yahoo finance and hasn’t been more than 2.5% over the past 4 years. https://t.co/P2PbucsiPI
— Kevin Erdmann (@KAErdmann) January 11, 2022