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The issue is that the regulations initially cut into the profits for meat packing companies. Then over time they serve as a barrier to entry, essentially creat

The issue is that the regulations initially cut into the profits for meat packing companies. Then over time they serve as a barrier to entry, essentially creating artificial monopolies and anti-competitive market stagnation. It's unintended consequences all the way down, with fair competition, sustainable agriculture / food production, and food safety concerns all being different goals, which are sometimes at odds. Admitted the costs and trade offs is the first step to making real hard decisions, and we're just nowhere close to being there as a culture.

r00fus 5y ago
> Then over time they serve as a barrier to entry, essentially creating artificial monopolies and anti-competitive market stagnation This usually happens when there is already a natural monopoly (or near to) - and usually results from regulatory capture [1]. [1] https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture
GeekyBear 5y ago
> The issue is that the regulations initially cut into the profits for meat packing companies. Then over time they serve as a barrier to entry, essentially creating artificial monopolies and anti-competitive market stagnation. I would say the issue is that antitrust officials stood idly by and allowed extreme market consolidation >For four decades, the U.S. government has watched idly as a handful of largely foreign-owned meat corporations grew horizontally by killing off or gobbling up their competitors and vertically by gobbling up their supply chains. Today four massive companies – JBS, Tyson Foods, National Beef, and Cargill – control over 80 percent of America’s beef. Three companies – JBS, Tyson, and Smithfield Foods – control 63 percent of America’s pork. Two of those – JBS and Tyson – also control 38 percent of poultry. https://lpeproject.org/blog/break-up-the-modern-meat-trust/ https://lpeproject.org/blog/break-up-the-modern-meat-trust/ Historically, we last saw this sort of cartel acting in the US 100 years ago leading to legislation that has slowly been whittled away until the problem has returned. https://en.wikipedia.org/wiki/Packers_and_Stockyards_Act https://en.wikipedia.org/wiki/Packers_and_Stockyards_Act

r00fus 5y ago

> Then over time they serve as a barrier to entry, essentially creating artificial monopolies and anti-competitive market stagnation This usually happens when there is already a natural monopoly (or near to) - and usually results from regulatory capture [1]. [1] https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture

GeekyBear 5y ago

> The issue is that the regulations initially cut into the profits for meat packing companies. Then over time they serve as a barrier to entry, essentially creating artificial monopolies and anti-competitive market stagnation. I would say the issue is that antitrust officials stood idly by and allowed extreme market consolidation >For four decades, the U.S. government has watched idly as a handful of largely foreign-owned meat corporations grew horizontally by killing off or gobbling up their competitors and vertically by gobbling up their supply chains. Today four massive companies – JBS, Tyson Foods, National Beef, and Cargill – control over 80 percent of America’s beef. Three companies – JBS, Tyson, and Smithfield Foods – control 63 percent of America’s pork. Two of those – JBS and Tyson – also control 38 percent of poultry. https://lpeproject.org/blog/break-up-the-modern-meat-trust/ https://lpeproject.org/blog/break-up-the-modern-meat-trust/ Historically, we last saw this sort of cartel acting in the US 100 years ago leading to legislation that has slowly been whittled away until the problem has returned. https://en.wikipedia.org/wiki/Packers_and_Stockyards_Act https://en.wikipedia.org/wiki/Packers_and_Stockyards_Act