Having the Government run ~200 stores isn’t going to drastically cut prices to make things more affordable, not without underpaying staff or suppliers?
As a government-run business, they have no need to pursue profit; they provide a service to people. The point of state-run grocery stores is to spend government money providing for people’s needs, there is no justification to underpay workers nor suppliers, nor to overcharge for the groceries.
Pay the suppliers a fair rate for their goods; this might be above what the duopolists pay, and that’s no problem. Charge a retail price low enough that people can afford groceries. Pay the workers enough to decently remunerate their work; this might be above what other grocery workers are paid, and that’s no problem.
The Australian government can always pay whatever Australian dollars are needed for this. By legislating they will pay the money they thereby create the money to pay for it. We should demand they pay for whatever is needed to provide what we need, without any condition on the business to return any profit.
Perhaps that results in a business that returns no profit. Perhaps as a business even ends up spending more money than it brings in. This is fine, so long as it does what we need it to do for that money spent.
(For those concerned with the risk of inflation by spending government money: that’s a valid concern! But paying decent prices to farmers for food, paying decent wages to workers in the grocery stores, is not what drives inflation. Let’s reduce inflation by taxing away the super-wealth of billionaires.)
All of these valid goals are compatible simultaneously, because there is no need for the state-run grocery business to be profitable. Government is meant to provide for its people, it is irrelevant whether the business returns a profit.
That isn’t the problem here; the resources in question are available for purchase in Australian dollars.
The problem we have, is that the private interests with money benefit from the current situation. They see no need to spend the money they have to solve the problem, because they don’t see it as a problem.
The grocery stores businesses and buildings already exist and can be purchased, by mandate if necessary; there is plenty of food grown, farmers want to sell it for decent conditions at a decent predictable price; there are plenty of people willing to work for a decent wage and decent conditions. Those people have debts for essential needs, they have bills to pay, they will not hoard the money they receive, they will spend that money back into circulation, to materially improve their lot. Creating money by paying for those, will not cause inflation.
And, as I pointed out, an effective way to combat the inflation drivers we have today, is to tax excess wealth (thereby removing outsized purchasing power from those who have no need of it). This creates space for those who need goods and services, to begin to afford to pay for them.
As a government-run business, they have no need to pursue profit; they provide a service to people. The point of state-run grocery stores is to spend government money providing for people’s needs, there is no justification to underpay workers nor suppliers, nor to overcharge for the groceries.
Pay the suppliers a fair rate for their goods; this might be above what the duopolists pay, and that’s no problem. Charge a retail price low enough that people can afford groceries. Pay the workers enough to decently remunerate their work; this might be above what other grocery workers are paid, and that’s no problem.
The Australian government can always pay whatever Australian dollars are needed for this. By legislating they will pay the money they thereby create the money to pay for it. We should demand they pay for whatever is needed to provide what we need, without any condition on the business to return any profit.
Perhaps that results in a business that returns no profit. Perhaps as a business even ends up spending more money than it brings in. This is fine, so long as it does what we need it to do for that money spent.
(For those concerned with the risk of inflation by spending government money: that’s a valid concern! But paying decent prices to farmers for food, paying decent wages to workers in the grocery stores, is not what drives inflation. Let’s reduce inflation by taxing away the super-wealth of billionaires.)
All of these valid goals are compatible simultaneously, because there is no need for the state-run grocery business to be profitable. Government is meant to provide for its people, it is irrelevant whether the business returns a profit.
MMT. So while this is true you run the risk of runaway inflation, way worse then now.
hell, I’m all for it though.
You’re referring to the inflation that occurs when people with too much money want to pay, for resources that are not available to satisfy demand.
That isn’t the problem here; the resources in question are available for purchase in Australian dollars.
The problem we have, is that the private interests with money benefit from the current situation. They see no need to spend the money they have to solve the problem, because they don’t see it as a problem.
They don’t want to break the private monopolisation of grocery stores, nor improve the terrible deals that farmers get, nor improve the crappy conditions and wages of grocery workers. This is a problem of, partly, a collusion to extract and hoard wealth from the system instead of circulating money to those who have those resources to offer.
The grocery stores businesses and buildings already exist and can be purchased, by mandate if necessary; there is plenty of food grown, farmers want to sell it for decent conditions at a decent predictable price; there are plenty of people willing to work for a decent wage and decent conditions. Those people have debts for essential needs, they have bills to pay, they will not hoard the money they receive, they will spend that money back into circulation, to materially improve their lot. Creating money by paying for those, will not cause inflation.
And, as I pointed out, an effective way to combat the inflation drivers we have today, is to tax excess wealth (thereby removing outsized purchasing power from those who have no need of it). This creates space for those who need goods and services, to begin to afford to pay for them.