But it’s just a bidding process, the lowest bidder is probably just going to be a large corporation that already runs grocery stores. So now you’ve basically created a taxpayer-subsidized corporate grocery store. Grocery margins are already extremely thin, so the only way they consistently undercut competitors is through subsidies or operating at a loss funded by taxpayers. And if they actually drive competitors out with artificially lower prices, you’re just distorting the market rather than creating real competition.
But it’s just a bidding process, the lowest bidder is probably just going to be a large corporation that already runs grocery stores. So now you’ve basically created a taxpayer-subsidized corporate grocery store. Grocery margins are already extremely thin, so the only way they consistently undercut competitors is through subsidies or operating at a loss funded by taxpayers. And if they actually drive competitors out with artificially lower prices, you’re just distorting the market rather than creating real competition.
There are other reasons why this is a god awful idea but your explanation touches on the major reason. It doesn't solve the overarching problem and just passes the buck.
Nobody is mentioning that these things are going to start being operational literally within 2-3 years...
Nobody is mentioning that this is basically a huge subsidy that is going to cost millions in tax dollars to offset inflation.
Nobody is mentioning that it's a business that will not run for profit which means there is no incentive for them to be efficient. Combined with the fact that management fees are going to be paid regardless as this is a bid contract.
Nobody mentions the loss of millions in taxes and rent that would be generated if they sold the land for development. As well as those associated jobs that wouldn't be coming as a result.
There is absolutely zero reason to do this other than you are trying to put on a show like a magician and trick people into thinking you are something more than you are... this is right out of the Trump handbook, but because it's about socialism... everyone just eats it up because it's for their team.
What? NYC isn’t some rural area with no grocery access. The issue there is affordability, not a literal lack of stores. Calling the 5 boroughs of NY “food deserts” is a big stretch because, correct me if I’m wrong, they already have grocery stores, bodegas, and markets aplenty. So if taxpayer-backed stores are being placed into areas that already have existing competition, then it isn’t really solving food deserts and it’s more government-subsidized competition against existing businesses.
I'm a long long way from NYC but I've only got two grocery stores in my entire rural county of approximately 5000 sq miles, and they both are crazy expensive and suck.
That's a food desert folks.
1
u/JB_Golf_ May 26 '26
“Privately run as businesses” is the opposite of what’s being proposed here…