Government-Run Grocery Store Is Predictably Losing Money

“Grocery store chains don’t have some anti-Chicago bias. If the people in charge of the city made those neighborhoods safe and economical places to do business, groceries would be as plentiful as they are anywhere else in America. Reducing Chicago’s high crime rate would surely help, though that’s admittedly a long-term project. But there is something city officials could do almost overnight: Reduce Chicago’s commercial property tax rates, which are some of the highest in the country, or the city’s high sales taxes that incentivize consumers (the ones who can, anyway) to do their shopping outside the city.
At best, a government-run grocery store is merely addressing the symptoms, not the underlying problems plaguing Chicago—and it seems unlikely to improve the symptoms, for that matter.”

https://reason.com/2023/10/23/government-run-grocery-store-is-predictably-losing-money/

Nearly 2 million kids have been kicked off Medicaid this year

“In the six months since states began double-checking the eligibility of people enrolled in their Medicaid programs for the first time in three years, more than 8.5 million Americans have lost their Medicaid benefits.
Based on enrollment numbers at the start of the year, that means roughly 1 in 10 people covered by Medicaid have lost their health insurance in a matter of months. After the US saw its uninsured rate hit historic lows during the pandemic, millions of the most vulnerable Americans are now falling off the rolls — with no assurance they will be able to find another form of coverage.

Worse, many of those losing coverage are losing it because of administrative hiccups and would otherwise be eligible — a problem that is disproportionately impacting children.

We won’t know until next year’s national insurance surveys how many people simply ended up uninsured and how many people successfully enrolled in another form of health coverage even as they lost their Medicaid benefits. But it is safe to expect that millions more Americans are now uninsured than were at the beginning of the year.

The health effects of this massive loss in health insurance will take years to be realized. But we know that having Medicaid means people are more likely to see a doctor and keep up with managing chronic conditions. The program helps people live longer. So losing coverage will make it even more difficult for a population that already struggles with its health to stay well.

Here’s why this is happening: During the pandemic, Congress approved an emergency provision that prevented almost anyone from losing their Medicaid coverage. Even if you had a change in income or life circumstances that in normal times would have led to you leaving the program, you were allowed to stay as long as that emergency policy was in place. But that provision expired earlier this year, part of the government standing down from its pandemic footing, and states were tasked with double-checking the eligibility of every person who was on their Medicaid rolls — a process referred to as unwinding. Starting in April, they could remove people who they found were no longer eligible.”

https://www.vox.com/policy/2023/10/13/23914264/medicaid-health-insurance-enrollment-data-unwinding-october

Basic income is less radical than you think

“unless you pin down the details, basic income is too vague to mean anything politically concrete. Like the Rorschach inkblot, you can interpret and design UBI in an endless variety of ways. A program that provides $250 per month is a different ballgame than one providing $1,200 per month. The same goes for one that replaces all other welfare, like food aid (sometimes referred to as a “pure UBI,” which would actually leave the most disadvantaged worse off, and is a bad idea), compared with one that complements existing programs.
Ultimately, the effects of any income guarantee hinge on the details. How much does it pay? Who gets it? How’s it financed? How does it relate to the rest of the welfare state? But most of the real proposals that have made their way through the policy world share a noteworthy trait: When the dust settles, they just wouldn’t be that radical, in either direction.

Generally, most people at the bottom of the income ladder would be better off, those in the middle would break even as they pay about as much in higher taxes as they’d receive from the basic income, and those at the top would be a little worse off. Society would neither ascend into utopian communism nor collapse into bleak idleness. There would just be less poverty and higher taxes.”

https://www.vox.com/future-perfect/2023/10/13/23914745/basic-income-radical-economy-poverty-capitalism-taxes

Biden sold off nearly half the U.S. oil reserve. Is it ready for a crisis?

“Biden’s administration sold off more than 40 percent of the Strategic Petroleum Reserve last year to help limit rising fuel prices after Russia invaded Ukraine, leaving the stockpile at its lowest levels since the early 1980s. That’s fueling Republican accusations that Biden has left the U.S. vulnerable to a disruption of global oil supplies — at a time when Hamas’ terrorist attacks in Israel are stoking fears of a wider regional war disrupting fuel shipments from the Middle East.”

the reserve still holds 351 million barrels — equivalent to nearly 56 days of total U.S. oil imports last year — though well below the peak of 727 million barrels it held during the Obama administration. That’s on top of 424 million barrels that private companies were storing in the U.S. as of early October.
The administration has defended its handling of the reserve, saying it still holds ample crude to protect the nation’s strategic needs and offer a cushion against price shocks. “I am not worried about the reserve levels at all,” Energy Secretary Jennifer Granholm told a House committee in September, adding: “It is the largest strategic reserve in the world.”

And the U.S. is no longer the energy beggar it was in 1973, when the Yom Kippur War prompted an Arab oil embargo against the United States that sent prices spiraling and left Americans waiting in hours-long lines at gas pumps. Back then, U.S. oil production was dropping while its thirst for the fuel was rising — prompting Congress to pass a law in 1975 to create the reserve.”

” the United States is the world’s biggest oil producer, which exports more crude and petroleum products than it imports. Its output is at record highs and is climbing, even as demand has flattened.

Over the years, some conservatives have even called for abolishing the reserve, complaining — as the Heritage Foundation did eight years ago — that “Presidents have used the SPR as a political tool.”

Still, the reserves’ diminished volumes limit Biden’s options to respond to a future shock to the oil markets, including those that could result from a widening of the war in the Middle East.”

https://www.yahoo.com/news/biden-half-empty-oil-fuels-090000833.html

‘A devastating financial blow’: California’s so-called ‘draconian’ fast-food bill is now law — here’s why McDonald’s franchisees say it’ll cost small business owners $250K a year

“B 1228 applies to fast-food chains with at least 60 locations nationwide — except for those that make and sell their own bread. The bill’s landmark change is a minimum wage hike to $20 per hour, almost $5 higher than the Golden State’s minimum wage of $15.50.
It would also see the establishment of a Fast Food Council to set wages and make recommendations for working conditions. The council has the power to increase the new minimum wage each year through 2029 up to 3.5% or the average change in the Consumer Price Index for urban wage earners, whichever is lower.

One key part of the bill has been removed since its proposal. Previously, AB 1228 would have made fast-food corporations jointly liable if franchisees committed labor violations, which the NOA believes could have led to “frivolous lawsuits against franchisees” that would then force the larger corporate head offices to exert more control over local operations.”

https://finance.yahoo.com/news/devastating-financial-blow-mcdonald-franchisee-163000954.html

The government’s case to break up Amazon, explained

“Much of the lawsuit centers around how Amazon essentially forces third-party sellers who use its Marketplace platform — which accounts for about 60 percent of Amazon’s sales — to purchase additional services from Amazon. Amazon’s critics say the company has gotten greedier over the years, resulting in sellers having to cut their profit margins or raise prices to consumers to account for Amazon’s ever-increasing charges and fees. The FTC says that many sellers pay nearly 50 percent of their revenue to Amazon when all of the fees are combined, and those costs can be passed on to the consumer.
One way it does this, the suit says, is through search ads, which allow sellers to have their products placed prominently in customer searches, above products that organically earned a top spot. The lawsuit alleges that Amazon has increased the number of ads in search results over the years, making sellers feel that the only way potential customers will see their products at all is if they pay Amazon for ads. This makes the shopping experience worse for consumers who have to wade through them to find organic results.

“These ads have been enormously lucrative for Amazon, but shoppers face less relevant results and are steered toward more expensive products, while sellers face an additional set of fees,” Khan said.

The lawsuit also addresses Amazon’s “buy box.” When several sellers offer the same product, Amazon picks which one gets the sale when a customer clicks to make a purchase — whether “add to cart” or “buy now.” That’s the buy box. Everyone else is relegated to an “other sellers” section, which is farther down the page. Most customers don’t bother or even know to check it, which makes that buy box placement crucial for sellers.

But Amazon has certain conditions that make it more likely that the seller will get that buy box — or, if they don’t comply with them, make it impossible to get it at all. Those conditions often mean giving Amazon more money.

Qualifying for Prime is one of them, but sellers pretty much have to use Amazon’s “Fulfilled by Amazon” logistics and shipping service in order to be eligible for it. Amazon has technically allowed sellers to use other fulfillment services, but it’s exceedingly difficult for any third-party fulfillment service to meet Amazon’s requirements, and Amazon closed off enrollment to the Seller Fulfilled Prime option years ago.

A few months ago, however, Amazon announced it would re-open enrollment “later this year.” Notably, it has also changed some of these practices in the European Union recently as part of a settlement to end an antitrust case there, including adding a second buy box and allowing seller-fulfilled Prime.”

https://www.vox.com/technology/2023/9/26/23835959/ftc-amazon-antitrust-lawsuit-prime-lina-khan

The Biden Administration’s Ridiculously Spendy Broadband Promises

“There’s a reason rural and small-town dwellers have less access to the sort of fast internet connections that urban dwellers enjoy: It costs a lot of money to lay fiber-optic cable—”an average cost of $1,000 to $1,250 per residential household passed or $60,000 to $80,000 per mile,” according to Dgtl Infra’s Jonathan Kim. It’s easier to limit and recover costs in densely populated areas where a lot of potential customers live along paved roads than in sparsely settled areas where there’s rough terrain and empty space between each household served. Costs rise dramatically in rural areas.”

“The Alaska Telephone Company, which won a $33 million grant, is planning to run fiber to 211 homes and five businesses at a staggering cost of nearly $204,000 per passing.””

“wireless internet offering 10-50 Mbps and (increasingly) satellite connections such as HughesNet, Viasat, and Starlink are how we connect to the world in my piece of Arizona. It’s a tradeoff you accept if you want open space around you. Well, you accept that tradeoff unless you can rope other people into paying the cost of laying cable.”

“”If you’re spending $50,000 to connect a very remote location, you have to ask yourself, would we be better off spending that same amount of money to connect [more] families?””

https://reason.com/2023/09/08/the-biden-administrations-ridiculously-spendy-broadband-promises/