If the economy is so great, why is food so expensive? Every time I go to the grocery store, I hear my fellow shoppers complain about soaring food prices. And with good reason! We are all experiencing grocery sticker shock. Prices have surged by 25% compared to pre-COVID levels, despite stable supply chains and stocked shelves. What the heck is going on?

The knee-jerk reaction is to point fingers at the current administration, but the roots of this issue began in the Reagan administration. Over the past five decades, deregulation, particularly in antitrust laws, has allowed consolidation within industries like food. Today, a mere four corporations control a staggering 70% of grocery stores in most major cities, resulting in monopolistic practices where competition dwindles and prices skyrocket.

Before corporations merge, they argue that economies of scale will bring lower costs and better service. But, once they’ve eliminated their competitors, they are free to raise prices without fear of losing customers. And to further maximize their profits, they close “underperforming” stores and create food deserts in underserved communities.

Sadly, the consequences of consolidation extend beyond consumer wallets. Family farms, once the backbone of rural America, have been swallowed by large agribusinesses, pushing many communities into decline. Independent farmers are financially squeezed, as consolidated distribution companies, free of competition, charge more for seeds and fertilizer and pay less for crops and livestock.

In an unfair cycle of greed, consumers struggle with higher grocery bills, farmers wrestle with diminished earnings, while bloated corporations rake in record-breaking profits. One glimmer of hope is that the Biden administration is attempting to block a merger between two giant grocery chains — Kroger and Albertsons. If they are successful, we may be on our way to reining in mergers and restoring competition and fair pricing to the food industry.

Patricia Ramsey

Rome