Sometimes a policy proposal comes along that is so bad, it has to be intellectually dismantled before it ever sees the light of day. Senator Elizabeth Warren is famous for such plans. Remember her mantra in the 2020 presidential campaign, “I’ve got a plan for that”? Thankfully, her [Accountable Capitalism Act](https://www.warren.senate.gov/download/accountable-capitalism-act-one-pager) – which would have ended capitalism as we know it – was rejected, along with her candidacy.
But now Senator Warren is at it again. This time she is suggesting that inflation, and higher food prices in particular, are a result of "price gouging" by large grocery store companies. Her solution is to crack down on “Big Grocery” with antitrust legislation, claiming that chains like Kroger are earning monopoly profits while ordinary Americans pay the price. There’s just one problem: grocery stores operate on razor-thin profit margins, and represent one of the most competitive markets around.
Don Boudreaux alerted me to this story on his blog, Cafe Hayek, where I always start my day. He returned to the show to expose the fallacies at the heart of her proposal. Putting aside the more nuanced issue of price gouging (a topic I’ve covered with Don in the past), I couldn’t let Warren’s farcical claims about grocery store monopolies go unchallenged. We discussed whether the idea is born of ignorance, mendacity, or some combination of the two.
The Bob Zadek Show
Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.
Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.Listen on
Substack App
RSS Feed
Appears in episode
Bob Zadek
Recent Episodes
Share this post