Kamalabama to nationalize groceries too!

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...????