Home
/
RELIGION & LIBERTY ONLINE
/
No, Chicago, We Don’t Need Government-Run Grocery Stores
No, Chicago, We Don’t Need Government-Run Grocery Stores
Apr 30, 2026 10:57 AM

After Walmart shuttered locations due to rising crime, the mayor of Chicago decided the answer was to … open their own grocery stores. What could go wrong?

Read More…

The city of Chicago is plagued by waves of violence, looting, and plunder dating back to 2020, which was deemed “the summer of looting” by the Chicago Tribune, spurred by the murder of George Floyd while in police custody amid COVID lockdowns. That summer, the Chicago police superintendent called for longer sentences for “looters, thieves, and vandals.” Three years later, however, Chicago isn’t faring much better: Chicagoans continue to flee the Windy City, and the violence continues. As of this April, looting across various Walmart stores resulted in four closings, half of their locations in the city.

The response? City officials, clergy, and residents came together to ask Walmart to reverse its decision and—wait for it—called for a boycott of all remaining open stores until the superstore capitulated. It should be obvious: the way to ensure that Walmart keeps its stores open is not to boycott the remaining stores after looters have pillaged all the merchandise! The police chief got it right back in 2020, when he called for criminal punishment for the looters, but to no avail. Moreover, American politicians like Alexandria Ocasio-Cortez made excuses for the 2020 looters. Defending looting will only ensure that grocery stores continue to be looted; this is elementary economics—lowering the cost of looting generates more looting. Incidentally, a Republican candidate in the Georgia legislature argued that AR-15s could be usedagainst the “looting hordes,” further calling the weapons “liberty machines.” Is it too much to ask that we all experience grocery store shopping without looting vandals or AR-15s? Chicago isn’t Caracas, after all.

And yet, Chicago’s mayor, Brandon Johnson, is doubling down on the economic crazy by throwing what can only be seen as a political Hail Mary as he suggests that the government create and operate a grocery store to ensure that Chicagoans have access to food. This is equivalent to witnessing the spread of a forest fire and dousing it with gasoline. As my colleague Anthony Sacramone would say: “It was the dumbest of times; it was the stupidest of times.” Even if one has never taken an economics class, have we learned nothing from the 70 years of government-run grocery stores in the Soviet Union? Modern-day Cuba and Venezuela also provide stark examples of what happens when the government determines how resources will be allocated. It never works and always generates violence.

There was a time when American and European economists grew fascinated with accelerating Soviet output, raising the question of whether we in the West could get economic growth and productive resource allocation with government at the helm. This is both a theoretical and an empirical question. Economists Ludwig von Mises and F.A. Hayek led the charge in what would be called “the socialist calculation debate” throughout the 20th century.

They suggested that due to the nature of human action and epistemological realities, we cannot successfully centrally plan economic affairs, because we don’t possess the requisite knowledge, which is the knowledge of time and place. Central planning eliminates prices, property rights, and the profit-loss mechanisms. Hayek argued that market prices, because of their contextual and decentralized nature, help us determine how resources can most productively be used at any given time. In a market, this is reconciled with temporal consumer preferences. Effective resource allocation cannot be known before the exchange through which prices emerge. Bureaucratic prices are arbitrary and cannot rival market prices. No one prehend all of what needs to be known to direct scarce resources toward their highest valued uses; the market works well because it is an emergent order, not a designed order.

This is as true now as it was when Hayek and Mises began to argue against the socialists in the 1930s. As Adam Smith declared, “The sole purpose of production is consumption,” meaning that firms must discover, learn, and adapt to consumers’ changing demands and needs. Firms don’t get to decide what customers want and then produce; instead, they must seek to understand the needs and wants of consumers to profit. There is no blueprint for economic development; it’s a spontaneous order.

OK, we’re far from Leningrad, and Mayor Johnson is not calling for a return to Bolshevism. Still, we must remember that his mendation is destined for the same harmful consequences. When the government runs grocery stores, people wait for food that never materializes. In market economies where firms protected by private property rights run grocery stores, the food waits for the people.

It might be tempting to believe that the U.S. government would never resort to the inevitable authoritarian tactics required both to maintain government-run stores without the lines and lack of food and somehow quell the plunder. Additionally, the Soviet problem was one of total central planning; the economy was plagued by production and distribution problems. The problems in Chicago and other American cities experiencing retail closures due to looting and violence stem from eroding economic freedom and the protection of private property rights. The Soviet economy was systematically one mand and control. Even the highest-ranking Ph.D. economists-turned-Bolsheviks couldn’t figure out how to turn wheat into bread.

They did understand, however, that wheat shortages would require offering higher prices to wheat farmers, but that’s only part of the calculation problem. As such, the Soviets successfully filled silos with wheat that … ultimately rotted because they could not figure out how to incentivize turning the wheat into bread. Increasing wheat yields is merely a technological problem. Transforming wheat into bread and determining how much wheat should be dedicated to bread production, rather than to its hundreds of alternative uses (cereal, bagels, muffins, flour, cakes, pizza dough), is a problem plex phenomena best addressed by the emergent market process.

During the socialist calculation debate, it was Oskar Lange, a Polish economist and advocate for socialism, who made one of the most damning critiques of the implementation of socialism, rightly asserting that it would lead to the “bureaucratization of economic life.” Mayor Johnson may not advocate prehensive socialism, but it’s a slippery slope. Socializing the grocery store will allow the government to socialize other things. Moreover, do you want the grocery store to be more like the post office or the DMV? It’s not that the government cannot do this; it indeed can. But at what cost? And what are the relevant alternatives? The answer is to restore economic freedom in these cities. People don’t flee cities in droves where there is peace and economic opportunity. They leave when those institutions are destroyed by terrible policies, not to mention politically corrupt labor unions, failing primary schools, billion-dollar-projected budget deficits, and high crime rates. These are Chicago’s problems. As Taylor Swift reminds us, “Band-Aids don’t fix bullet holes.”

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
EU conflicts of interest
The nearly decade-long battle between the European Union and Microsoft took another turn earlier this month, as the EU Commission offered a fresh threat to Microsoft: Submit to our demands or face stiff new penalties. The item at issue is an aspect of the 2004 ruling against Microsoft, in which “the Commission fined Microsoft and ordered it to provide petitors with information allowing them to develop workgroup server software interoperable Windows desktop operating system.” That ruling is still under appeal...
Private education and global health
Check out the links from this piece by Joe Knippenberg at No Left Turns, which make the case that “small-scale support for private slum schools—through scholarship programs, backing for school-voucher schemes, or subsidized microfinance—might do far more good than a big aid push directed at government-run education.” Combine that with the insights from this recent NBER paper, “The Effects of Education on Health,” which examines the “well known, large, and persistent association between education and health,” and you could reach...
‘Great Firewall’ not great enough
According to published reports, China is planning on adding new censorship regulations covering blogs and webcasts (HT). President Hu Jintao says the government needs to take these steps to “purify” the Internet, leading to “a more healthy and active Internet environment,” according to the Xinhua news agency. Estimates put the number of Internet police manning the “Great Firewall of China” at 30,000-40,000. To see if those cops are looking at a particular website, test it at GreatFirewallOfChina.org. You can also...
Adam Smith, the British Grant (or Jackson)
The title of this post is not intended to imply anything by way parison between Smith and the American gentlemen. It is only to report that the United Kingdom has launched a new 20£ note sporting the visage of the Father of Economics. Peter Heslam spins the news to good effect in a ment on Smith’s moral sensibility. To investigate that issue more thoroughly, see James Halteman’s 2003 article in the Journal of Markets & Morality. ...
Evangelical environmentalism’s moral imperative
In this week’s Acton Commentary, I examine recent events surrounding the conflict amongst evangelicals over global warming political activism. In “Evangelical Environmentalism’s Moral Imperative,” pare the shape of the argument to the debate over the last decade on the topic of poverty. In the same way that conservatives were accused of not caring for the poor because they opposed an expansive welfare state, critics of climate change politics are being portrayed as not caring for the environment. To the extent...
Adam Smith’s Theory of Moral Sentiments
Kevin noted earlier this week that the UK has issued a paper bill featuring Adam Smith. I also received notice this week that the Adam Smith Review is planning a conference in January of 2009, celebrating the semiquincentennial (250th) anniversary of the publication of Smith’s Theory of Moral Sentiments. The conference announcement notes that scholarship has e to appreciate the importance of Smith’s moral philosophy for his overall intellectual project.” For more on just how Smith’s Theory of Moral Sentiments...
“The university is totally ignoring diversity of thought”
Coming soon to a theater near you (hopefully) – Evan Coyne Maloney’s Indoctrinate U. From the film’s website: At colleges and universities across the nation, from Berkeley and Stanford to Yale and Bucknell, the charismatic filmmaker uncovers academics who use classrooms as political soapboxes, students who must parrot their professors’ politics to get good grades, and administrators who censor diversity of thought and opinion. With flair and wit, Maloney poses tough questions to America’s academics and university administrators — who...
Turnabout is fair play?
The nation which hosted a large conference ing Holocaust deniers last year is now full of righteous indignation over historical inaccuracies in the film ‘300’. As Azadeh Moaveni reports from her daily travels in Tehran, “Iranians buzzed with resentment at the film’s depictions of Persians, adamant that the movie was secretly funded by the U.S. government to prepare Americans for going to war against Iran.” (HT: Disorganizational Behavior) No word yet on whether the Athenians are upset over being called...
Google minds the gaps in statistical analysis
Google recently announced that it has purchased the Trendalyzer software from Gapminder, a Swedish non-profit (HT: Slashdot). Trendalyzer is the brain-child of professor Hans Rosling, who was lecturing on international development “when it struck him that statistics were an underexploited resource, often presented in an prehensible fashion. To solve the problem he developed – along with his son – a new kind of software.” One interesting aspect of this purchase is that the software’s inventor won’t profit from its sale,...
Global warming and population control
From the “we had to destroy the village to save it” department, check out this item from the Huffington Post by Dave Johnson, “A Global Warming Suggestion: Fewer Babies.” It’s pretty indefatigable logic: if there are no people to be affected by environmental catastrophe, then the problem has been avoided. Johnson writes, “Yes, hundreds of millions of people will face water shortages and starvation by 2080 — but only if those hundreds of millions of people are alive in the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved