Thursday, February 22, 2024

U.S. Grocery Stores Are Better Than Russsian Stores

See Unfrozen Caveman Tucker by Scott Lincicome of the Cato Institute. Excerpts:

"Let’s start with that supposedly incredible Russian grocery store technology. As National Review’s Dominic Pino first pointed out, the futuristic Russian amenities that so captivated Carlson—coin-operated shopping carts, in-store bakeries, cart escalators, etc.—have been available at American grocery stores, even discount ones, for decades. (See, for example, Aldi or Wegman’s or Lidl.) Many American stores lack these amazing sci-fi technologies (LOL) simply because they’re unnecessary—not because we’re suffering from some sort of “radicalizing” national decline or whatever. And, of course, U.S. supermarkets are constantly innovating with new items, amenities, and technologies like smart carts, dynamic pricing, scan-and-go, made-to-order meals (ordered online or at a kiosk), and artificial intelligence—a testament to intense competition in the low-margin U.S. industry.

Carlson’s economics are similarly mistaken. First, he seemingly fails to understand that the surprisingly low price for his groceries—about $100 when he and his crew expected $400—is a tribute to American, not Russian, wealth. According to the latest data from the World Bank, for example, the median American worker would need to work about a day and a half to afford $100 worth of groceries, while it’d take the median Russian almost a week. A similar gap applies to the poor: The daily income or consumption of the poorest 10 percent of Americans in 2022 was more than three times that of their Russian counterparts, after adjusting for inflation and cost of living—a wealth differential that’s actually widened (from around 2.5 times) over the last decade."

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