You're Probably Getting Screwed

At the grocery store...

Welcome to You’re Probably Getting Screwed, a weekly newsletter and video series from J.D. Scholten and Justin Stofferahn about the Second Gilded Age and the ways economic concentration is putting politics and profits over working people.

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The USDA suggests that ½ of our diet should come from fruits and vegetables but less than 2% of farm subsidies actually goes towards fruits and vegetables that we eat. You should think about that and these two things the next time you buy groceries.

With grocery costs being the top of mind for a lot of folks, one thing to think about is how far food travels. This past week alone, I have had blueberries from Peru, oranges from South Africa and Bell Peppers from Mexico. We are at a point now where more than half of the fresh fruit and almost a third of the fresh vegetables Americans buy now come from other countries.

Now, some of this is because things like the Southern Hemisphere seasons are different from our growing seasons. But just like John Deere shipping manufacturing jobs out of the country, fruit and vegetable companies are doing the same thing. 

The other thing to think about when you’re at the grocery store is how much does the CEO of these food companies make. 

$11.7 million

$22.8 million

$18.7 million

$16.4 million

$13.6 million

… You get the picture. 

And when it comes to making you pay more while corporations call it “inflation” here’s what Federal Trade Commission Chair Lina Khan said on 60 Minutes:

YOU’RE PROBABLY (ALSO) GETTING SCREWED BY:

Invitation Homes

The country’s biggest landlord for single-family homes charged renters tens of millions of dollars in junk fees between 2021 and 2023 using deceptive tactics according to the Federal Trade Commission. It was announced Wednesday that Invitation Homes has agreed to pay $48 million to settle the claims. 

Rich Tax Cheats…Again

Interest Rates

While all of us have been paying more for home loans, car loans and on our credit card debt in recent years, the Financial Times found that the high interest rate environment has resulted in a $1 trillion windfall for the largest banks in the country instead of increased earnings for savers. 

Blackrock

Another week, another great video from the folks at A More Perfect Union, this time about the massive asset manager Blackrock, which has stock in 95% of Fortune 500 companies. 

 

Bunge-Viterra

These two massive companies want to merge and create the world’s largest agricultural commodity trader. The National Farmers Union in Canada has a poignant editorial on the consequences of this merger and the broader threat monopoly power poses. 

John Fisher

Yesterday the Oakland Athletics played their final game in Oakland all because their silver spooned owner (John Fisher) wants to cash revenue-sharing checks and public subsidies in Las Vegas.

Fisher wrote an open letter to As fans that was the textbook definition of “too little too late.” In addition to screwing fans, Fisher’s move will mean concessions workers at the Oakland Coliseum will be without a paycheck, health insurance or severance.

Just like the other issues we talk about in this newsletter, the A’s decision to leave Oakland is completely avoidable, which makes it all the more frustrating. A bay area sports reporter channeled that frustration earlier in the week following Fisher’s letter. 

Steel Monopolies

Writer and northern Minnesota resident Aaron Brown has an editorial on an overlooked part of the debate surrounding the future of US Steel, which is control over the mining industry in Minnesota’s Iron Range. 

Justin has written before about how Cleveland Cliffs has come to dominate the mining industry in Minnesota through various acquisitions over the years. 

Some Good News

FTC is taking on PBMs

Last week the FTC announced it had sued “sues prescription drug middlemen (the three largest pharmacy benefit managers) for artificially inflating insulin drug prices. While the suit is specific to insulin, it focuses on the kinds of anticompetitive practices PBMs use to drive up drug costs and destroy local pharmacies. 

VP Harris: Trustbuster

The Harris-Walz Campaign released an 82-page economic policy agenda this week that doubles down on the trustbusting of the Biden-Harris Administration, particularly when it comes to reigning in the high costs people are facing. 

BEFORE YOU GO

Before you go, I need two things from you: 1) if you like something, please share it on social media or the next time you have coffee with a friend. 2) Ideas, if you have any ideas for future newsletter content please comment below. Thank you.

Standing Tall for All, 

J.D. Scholten