It’s Reagan’s Fault

It appears that whenever you find something that afflicts society, 9 times out of 10, it goes back to the Reagan administration.

Case in point, food deserts, where large areas of poorer urban neighborhoods are underserved by grocery stores, requiring either long trips to get inexpensive and healthy food, or that they get expensive unhealthy food from local convenience stores and the like.

The concept of the food desert has been around long enough that it feels almost like a fact of nature. Tens of millions of Americans live in low-income communities with no easy access to fresh groceries, and the general consensus is that these places just don’t have what it takes to attract and sustain a supermarket. They’re either too poor or too sparsely populated to generate sufficient spending on groceries, or they can’t overcome a racist pattern of corporate redlining.

But these explanations fail to contend with a key fact: Although poverty and ruralness have been with us forever, food deserts arrived only around the late 1980s. Prior to that, small towns and poor neighborhoods could generally count on having a grocery store, perhaps even several. (The term food desert was coined in 1995 by a task force studying what was then a relatively new phenomenon.)

The high-poverty, majority-Black Deanwood neighborhood of Washington, D.C., is typical of the trend. In the 1960s, the area had more than half a dozen grocery stores, according to a study by the anthropologist Ashanté Reese. These included a branch of the local District Grocery Stores co-op, a Safeway supermarket, and independent Black-owned businesses such as Tip Top Grocery on Sheriff Road. By the 1990s, however, the number of grocery stores in Deanwood had dwindled to just two, and today the neighborhood has none.

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Food deserts are not an inevitable consequence of poverty or low population density, and they didn’t materialize around the country for no reason. Something happened. That something was a specific federal policy change in the 1980s. It was supposed to reward the biggest retail chains for their efficiency. Instead, it devastated poor and rural communities by pushing out grocery stores and inflating the cost of food. Food deserts will not go away until that mistake is reversed.

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Congress responded in 1936 by passing the Robinson-Patman Act. The law essentially bans price discrimination, making it illegal for suppliers to offer preferential deals and for retailers to demand them. It does, however, allow businesses to pass along legitimate savings. If it truly costs less to sell a product by the truckload rather than by the case, for example, then suppliers can adjust their prices accordingly — just so long as every retailer who buys by the truckload gets the same discount.

For the next four decades, Robinson-Patman was a staple of the Federal Trade Commission’s enforcement agenda. From 1952 to 1964, for example, the agency issued 81 formal complaints to block grocery suppliers from giving large supermarket chains better prices on milk, oatmeal, pasta, cookies, and other items than they offered to smaller grocers. Most of these complaints were resolved when suppliers agreed to eliminate the price discrimination. Occasionally a case went to court.

During the decades when Robinson-Patman was enforced — part of the broader mid-century regime of vigorous antitrust — the grocery sector was highly competitive, with a wide range of stores vying for shoppers and a roughly equal balance of chains and independents. In 1954, the eight largest supermarket chains captured 25 percent of grocery sales. That statistic was virtually identical in 1982, although the specific companies on top had changed. As they had for decades, Americans in the early 1980s did more than half their grocery shopping at independent stores, including both single-location businesses and small, locally owned chains. Local grocers thrived alongside large, publicly traded companies such as Kroger and Safeway.

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Then it was abandoned. In the 1980s, convinced that tough antitrust enforcement was holding back American business, the Reagan administration set about dismantling it. The Robinson-Patman Act remained on the books, but the new regime saw it as an economically illiterate handout to inefficient small businesses. And so the government simply stopped enforcing it.

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Why didn’t large chains fill the void when local stores closed? They didn’t need to. In the 1960s, if a chain like Safeway wanted to compete for the grocery dollars spent by Deanwood residents, it had to open a store in the neighborhood. But once the independent stores closed, the chains no longer had to invest in low-income areas. They could count on people to schlep across town to their other locations. Today, in fact, many Deanwood residents travel to a Safeway outside the neighborhood to shop. This particular Safeway has had such persistent issues with expired meat and rotting produce that some locals have taken to calling it the “UnSafeway.” Yet, without alternatives, people keep shopping there.

Yet another example of how Ronald Reagan’s enforcing Robert Bork’s corrupt theory of antitrust ruined the United States.

For America to be “Great Again” we need aggressive antitrust, and this includes not just standard antitrust enforcement, but a rollback of the scope of policies that deliberately enhance monopoly powers, like patent and copyright.