Foundation for Economic Education

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The country that once stunned Soviet politician Boris Yeltsin with grocery abundance is now reopening an old debate.

Comment “Groceries” and we’ll send you the full video. Rising food prices have made central planning fashionable again. In New York City, Mayor Zohran Mamdani has turned city-owned grocery stores into a political symbol: public land, taxpayer support, lower prices, and government-directed affordability. Mamdani’s politics ignores tradeoffs. Grocery stores operate with thin margins, complex logistics, constant spoilage risks, labor costs, supplier contracts, transportation constraints, and fierce competition. Lower prices cannot be commanded into existence without someone absorbing the cost. If taxpayers cover rent, construction, or losses, the price at checkout may fall while the real cost moves elsewhere. Economics does not bend to charisma. Good intentions do not stock shelves, manage inventory, discipline waste, or replace the knowledge generated by competition.
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