The Grocery Store Scam

Dear Reader,

I always tell people to look at the math.

Numbers don't lie. Politicians do.

• Politicians are promising to lower food prices by opening government-run grocery stores. It is a scam. 

• The only way a city-run store can lower prices is through massive taxpayer subsidies.

• This isn't about compassion. It is about political power and Marxist ideology. You cannot override the laws of economics. 

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Right now, politicians in New York are pushing a terrifying new plan. 

They want to open city-run grocery stores. They promise it will lower the cost of food for everyday citizens.

It is a massive lie.

It either shows a complete misunderstanding of basic economics, or it is a deliberate attempt to destroy the local economy.

Either way, you are the one who is going to pay for it.

The Myth of the Greedy Grocer

The politicians want you to believe that grocery stores are greedy. 

They want you to think supermarkets are sitting on a gold mine of hidden profits.

It is garbage.

The grocery business is one of the most brutal, competitive industries on earth. 

Companies like Kroger and Publix don't survive by accident. They survive because they are relentlessly efficient.

They cut waste. They manage logistics. They fight for every penny.

And after all that work, what do they actually earn?

About one to two dollars for every hundred dollars you spend.

That is a one to two percent net profit margin.

So, when a politician tells you the government can step in and dramatically lower prices, you have to ask a simple question.

Where is the money coming from?

The Brutal Math

Let’s look at the real numbers.

For every $100 you spend at the store, the food itself costs $75.

That leaves $25. But the store doesn't keep that.

They have to pay for labor. They have to pay rent. They have to pay utilities, insurance, and credit card fees. 

They have to cover transportation. They have to cover the 3 percent they lose to shoplifters and spoilage.

And, of course, they have to pay taxes and regulatory compliance costs.

All of those expenses eat up 23 of that remaining $25.

There is no fat to cut. 

Even if the government eliminated all profit, the prices would barely drop.

The Subsidy Trap

A city-run store doesn't get special deals on milk or eggs. 

They pay the same wholesale prices as everyone else.

When fuel goes up, they pay more. When utilities go up, they pay more. When wages go up—and they always do with government jobs—they pay much more.

The math doesn't change just because the sign on the door says "Government."

So, how do they plan to lower prices?

Subsidies.

They will sell the food below cost, and they will force the taxpayers to make up the difference.

When the government subsidizes something, it doesn't make it cheaper. It just means you are paying for it somewhere else.

Destroying the Neighborhood

But the cost to the taxpayer isn't even the worst part.

Think about what happens when the government starts selling food below cost. What happens to the small businesses? 

What happens to the local bodegas and the family-owned markets?

They can't compete with a subsidized government operation.

They will close. One by one.

The government will drive the private sector out of business.

And then, what happens when the government stores inevitably stumble? Managing thousands of products and complex supply chains is hard. 

Government bureaucracies are famous for inefficiency and failure.

When the city-run stores fail, what is left?

Nothing. Fewer options. Less access. A massive food desert.

The very communities this plan is supposed to help will end up completely destroyed.

The Marxist Mindset

This isn't about compassion.

If they really wanted to lower food prices, they would tackle the real problems. They would cut the regulations that choke supply chains. 

They would lower energy costs. They would stop printing money and causing inflation.

But they don't want to fix the market. They want to replace it. It is a Marxist mindset. 

They believe that if a socialist policy failed in the past, it was just because the wrong people were in charge.

"They didn't do it right," they say. "Let us show you how."

It is the definition of insanity.

This is about political power. It is about control.

Do not fall for the scam. You cannot promise big results from tiny margins. You cannot override the laws of economics.

Protect your wealth. Educate yourself. And never trust a politician who promises you something for nothing.

Kiyosaki Uncensored