food/agriculture

Cross-posted at Reports from the Economic Front.

Market advocates have had their way for years now and one of the consequences has been the growing dominance of industry after industry by a select few powerful corporations.  In short, unchecked competition can and does produce its opposite: monopoly.

As John Bellamy Foster, Robert W. McChesney, and R. Jamil Jonna explain:

This [development] is anything but an academic concern. The economic defense of capitalism is premised on the ubiquity of competitive markets, providing for the rational allocation of scarce resources and justifying the existing distribution of incomes. The political defense of capitalism is that economic power is diffuse and cannot be aggregated in such a manner as to have undue influence over the democratic state. Both of these core claims for capitalism are demolished if monopoly, rather than competition, is the rule.

The chart below highlights the rise, especially since the 1980s, in both the number and percentage of U.S. manufacturing industries in which four firms account for more than 50% of sales.

Number and Percentage of U.S. Manufacturing Industries in which Largest Four Companies Accounted for at Least 50 Percent of Shipment Value in Their Industries, 1947-2007:

As the table below shows, the concentration of market power is not confined to manufacturing.

Percentage of Sales for Four Largest Firms in Selected U.S. Retail Industries:

As impressive as these concentration trends may be, they actually understate the market power exercised by leading U.S. firms because many of these firms are conglomerates and active in more than one industry.  The next chart provides some flavor for overall concentration trends by showing the growing share of total business revenue captured by the top two hundred U.S. corporations.  Notice the sharp rise since the 1990s.

Revenue of Top 200 U.S. Corporations as Percentage of Total Business Revenue, U.S. Economy, 1950–2008:

These are general trends.  Here, thanks to Zocalo (which draws on the work of Barry Lynn), we get a picture of the market dominance of just one corporation–Procter and Gamble.  This corporation controls:

• More than 75 percent of men’s razors
• About 60 percent of laundry detergent
• Nearly 60 percent of dishwasher detergent
• More than 50 percent of feminine pads
• About 50 percent of toothbrushes
• Nearly 50 percent of batteries
• Nearly 45 percent of paper towels, just through the Bounty brand
• Nearly 40 percent of toothpaste
• Nearly 40 percent of over-the-counter heartburn medicines
• Nearly 40 percent of diapers.
• About 33 percent of shampoo, coffee, and toilet paper

A recent Huffington Post blog post, which includes the following infographic from the French blog Convergence Alimentaire, makes clear that Procter and Gamble, as big as it is, is just one member of a small but powerful group of multinationals that dominate many consumer markets.   The blog post states: “A ginormous number of brands are controlled by just 10 multinationals… Now we can see just how many products are owned by Kraft, Coca-Cola, General Mills, Kellogg’s, Mars, Unilever, Johnson & Johnson, P&G and Nestlé. ”   See here for a bigger version of the infographic.

And, it is not just the consumer goods industry that’s highly concentrated.  As the Huffington Post also noted: “Ninety percent of the media is now controlled by just six companies, down from 50 in 1983…. Likewise, 37 banks merged to become JPMorgan Chase, Bank of America, Wells Fargo and CitiGroup in a little over two decades, as seen in this 2010 graphic from Mother Jones.”

Not surprisingly, there are complex interactions and struggles between these dominant companies.  Unfortunately, most end up strengthening monopoly power at the public expense.  For example, as Zocalo reports, Wal-Mart, Target, and other major retailers have adopted a new control strategy in which:

…these retailers name a single supplier to serve as a category captain. This supplier is expected to manage all the shelving and marketing decisions for an entire family of products, such as dental care.

The retailer then requires all the other producers of this class of products — these days, usually no more than one or two other firms — to cooperate with the captain. The consciously intended result of this tight cartelization is a growing specialization of production and pricing among the few big suppliers who are still in business…

It’s not that Wal-Mart and category copycats like Target cede all control over shelving and hence production decisions to these captains. The trading firms use the process mainly to gain more insight into the operations of the manufacturers and hence more leverage over them, their suppliers, and even their other clients… Wal-Mart, for instance, has told Coca-Cola what artificial sweetener to use in a diet soda, it has told Disney what scenes to cut from a DVD, it has told Levi’s what grade of cotton to use in its jeans, and it has told lawn mower makers what grade of steel to buy.

And don’t think that such consolidation within the Wal-Mart system makes it easier for new small manufacturers and retailers to rise up and compete. The exact opposite tends to be true. . . . This [system] boils down to presenting the owners of midsized and smaller companies, like Oakley or Tom’s of Maine, with the “option” of selling their business to the monopolist in exchange for a “reasonable” sum determined by the monopolist.

This was the message delivered to many of the companies that in recent decades managed to develop big businesses seemingly outside the reach of the Procter & Gambles, Krafts, and Gillettes of the world. Consider the following:

• Ben & Jerry’s, the Vermont ice cream company that reshaped the industry, was swallowed by Unilever in 2000.
• Cascadian Farm, one of the most successful organic food companies, sold out to General Mills and was promptly transformed into what its founder calls a “PR farm.”
• Stonyfield Farm and Brown Cow, organic dairy companies from New Hampshire and California, respectively, separately sold con-trol to the French food giant Groupe Danone in February 2003 and were blended into a single operation.
• Glaceau, the company behind the brightly colored Vitamin Water and one of the last independent success stories, sold out to Coca-Cola in 2007.

The practical result is a hierarchy of power in which a few immense trading companies — in control of and to some degree in cahoots with a few dominant supply conglomerates — govern almost all the industrial activities on which we depend, and they back their efforts with what amounts to police power. This tiny confederation of private corporate governments determines who wins and who loses in this country, at least within our consumer economy.

Of course the growing concentration nationally is matched by a growing concentration of power globally, with large transnational corporations from different nations battling each other and, in many cases, uniting through mergers and acquisitions.  We cannot hope to understand and overcome our current problems and the structural pressures limiting our responses to them without first acknowledging the extent of corporate dominance over our economic lives.

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Martin Hart-Landsberg is a professor of Economics and Director of the Political Economy Program at Lewis and Clark College.  You can follow him at Reports from the Economic Front.

Fish farming, the raising of fish in captivity, is often seen as a more sustainable way to feed the increasingly global hunger for seafood.  At least, the story goes, it doesn’t contribute to the over-fishing of our oceans.

Right?

The answer turns out to be: not necessarily.  Carnivorous species of farmed fish still need to be fed, so there is  an entire secondary industry: fishing for fish food.  Just about anything that can be caught will do; the mix of sea animals is simply ground up and made into pellets.  So, the fisherman typically catch absolutely everything that they can, sterilizing a small piece of the ocean.  They don’t distinguish between large and small fish (the large they can sell as human food, the small they sell as fish food) or adults and juveniles. By taking the larger fish, they’re taking out populations before they have a chance to reproduce.  You can see how this is a system with a devastating expiration date.

This 9-minute clip from Grinding Nemo covers the environmental impact of this practice, as well as the inhumane working conditions of some of the men hired to work in this industry:

Via Sociology in Focus.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Last Halloween my students (at a private liberal arts school) told me that it was considered embarrassing to wear the same costume to two separate parties. Many of them, then, had purchased two or more costumes for the week preceding the holiday.  I remarked about how convenient that was for the economy, creating a need to spend money that helped our economic engine keep churning.

I thought of their stories when I came across this vintage ad for Halloween candy.  It tells the viewer that a really cool house will offer trick-or-treaters more than one type of candy and allow them to take one of each.  How excellent for the candy companies if offering only one piece of one kind of candy is considered below the bar.

Via Vintage Ads.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

In this five-minute interview, Sociologist Joel Best debunks the idea that people are poisoning Halloween candy and talks about how his research in the area prompted his career studying the social construction of social problems:

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Well, first, they’re not baby carrots.  The two-inch carrots marketed as juveniles are actually pieces of regular sized carrots that are cut off and shaved into a “baby carrot” shape.  So, there’s no reason to expect the babies to be fresher, more tender, or sweeter. (Sorry, baby carrot lovers.)

But revealing how baby carrots are made is only Part I of the answer to the question of where they come from.  Who had the idea to make “baby carrots” and for what reason?

It turns out the idea came from a grower named Mike Yurosek.  According to Douglas McGray at Fast Company, it was grocery stores that pushed Yurosek to invent the baby carrot.  McGray writes:

…Yurosek had become frustrated with all the waste in the carrot business. Supermarkets expected carrots to be a particular size, shape, and color. Anything else had to be sold for juice or processing or animal feed, or just thrown away. Yurosek wondered what would happen if he peeled the skin off the gnarly carrots, cut them into pieces, and sold them in bags.

He whipped up two prototypes: the baby carrot with which we’re all familiar and “bunny balls,” 1-inch round carrot bites.  Somehow the latter didn’t catch on.  The rest is history.

Thanks to Annie C. for sending in the link!

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Cross-posted at Family Inequality.

People don’t know how much they’re eating.

A recent experiment found that people eat more when the container is larger, even when the portion size is not. They gave Belgian college students a container of M&Ms and parked them in front of a TV, with some cover story. The students were randomly assigned to three groups, medium-portion/small-container, medium-portion/large-container, and large-portion/large-container. These were the results: The ones who got the large container ate more, whether it was full or not (the difference between the two wasn’t significant).

These kinds of experiments continuously suggest that distractions, distortions and other apparently irrelevant information and events routinely have large effects on people’s eating practices (here’s an extensive review). One infamous study showed that even people served 14-day-stale popcorn at the movies ate 34% more when it was served in a large container. In an earlier popcorn study, researchers found that people given large containers not only ate more, but were less able to report how much they ate. They concluded:

When a food is eaten from a large container, it appears easy to lose track of how much one eats. Even if the food were to taste relatively unfavorable, eating it from a large container may cause one to overeat because they lose track of how much they have consumed.

About that Yogurt Tub…

All this occurred to me when I visited one of our many local Frozenyo franchise outlets. It’s a self-serve frozen yogurt place where you pay one price by weight no matter what you put in your bucket. The trick that impressed me is the bucket — there is only one size, and it’s very large. But you can’t judge how big it is because there’s nothing to compare it with — no sizes or prices on the wall, no mini cup for kids — just one stack of identical buckets. So the person who posted this picture on Yelp probably thought she had a reasonable size serving, since the thing is barely half full:

There are three possible ways to judge your self-served serving size. You can go by the tub (“I filled it half way”), you can go by the person next to you (“sheesh!”), or you can look at the cartoon penguins on the wall:

How much is the penguin eating? I took home one of the buckets, and measured the volume of water it holds: 18 ounces. In comparison, a standard kid-sized serving bowl, the kind some people use to give their kids ice cream at home, holds 12 ounces:

An innocent child used to half a bowl of ice cream — in the bowl on the left — might be pretty steamed if you served her this:

According to the serving size information on the back wall of Frozenyo, I think that’s about 1.5 servings, or 150 calories of the nonfat variety, before toppings. The penguin’s overflowing bowl is 5.0 servings. With no toppings that’s 500 calories. If you pile it with M&Ms, sprinkles, hot fudge, Captain Crunch, coconut topping and fresh kiwis, who knows. It’s not really that many calories to consume — the same number as a single slice of banana bread at Starbucks.

But the point is you don’t know how much you’re eating. One Yelp reviewer cautioned that you can get a stomach ache after eating at Frozenyo, because “your eyes are bigger than your stomach.” I think it’s because the dump-truck sized delivery vehicle you eat it out of is bigger than your stomach.

But most reviewers love it for the individual control over serving size and toppings, and the reasonable price ($.39 per ounce by weight, or $5-$6 for a typical load).* I think it’s a winning business model, with low labor costs, because all you need is one person to pour the mix into the machines and another to weigh the tubs and swipe credit cards. According to the company’s ambitious map, there are still 46 states with “territory available.”

If I were them, I would increase the bucket size by 5% per year. I doubt anyone would notice.

* Paging George Ritzer: it’s the irrationality of rationality.

A new submission from Rucha S. inspires me to bring back our 4-year-old boob products post.  Hers is added last, so enjoy the scroll!

Sent in by Jessica F. and found at Trend de la Creme. Boob hot water bottles:

Boob ice cubes:

A boob/rocket-shaped “stress toy”:

The boob glasses don’t even make sense:

Taylor S. sent us this picture of “boob stress relievers” sold at a flea market:

Pitseleh S. found these boob clogs at boinkology.  You can also get these clogs with piercings or tattoos.

In comments to another post, Tim pointed us to this ad:

Many, many more after the jump.

more...

First the marketing team for an energy drink out of Poland, called “Black,” hired a Black person, Mike Tyson, to personify its product.  Then, they surround him with White, female models and have the convicted rapist call himself a “beast” that can’t control himself.  Tag lines include “that’s the power of Black” and “Black power.”

So we have, in one ad campaign, the fetishization of Black men, the White supremacist portrayal of White women as the ultimate female, their objectification (see #3, he actually hands one out in the second ad), the trivialization of his crime (he can’t control himself, LOL right!?), the use of animalistic language to refer to Black people, and the appropriation of the Black Power movement.  Anyone see anything else?  Does it matter that this comes out of Poland and not the U.S.?

Thanks to Tom Megginson at Work That Matters for the heads up.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.