Last updated on August 31, 2011
“A&P was at the center of a bitter political struggle that lasted for nearly half a century–a struggle that went far beyond economics. At its root were competing visions of society. One vision could be described with such words as ‘modern’ and ‘scientific,’ favoring the rationalism of cold corporate efficiency as a way to increase wealth and raise living standards. The other vision could fairly be termed ‘traditional.’ Dating to Thomas Jefferson and his contemporaries, the traditional vision harked back to a society of autonomous farmers, craftsmen, and merchants in which personal independence was the source of individual opportunity and collective prosperity.”
This is from Marc Levinson’s The Great A&P and the Struggle for Small Business in America, which tells the story of the famous A&P chain of grocery stores and which I began reading as soon as I received it earlier this week.
My interest in Levinson’s book stems from my interest in agricultural value chains in developing countries, but I think it will make for great reading in my law and economics seminar next spring when we talk about vertical integration and the Sherman Antitrust Act. Indeed, in September 1946, A&P was found to have used its size and market power to offer prices that were too low, thereby pricing its competitors out of the market.
Regarding the struggle between a modern and scientific vision on the one hand and a traditional vision on the other hand, I cannot help but be reminded of the over-romanticizing of small farmers and the accompanying disdain for agribusiness that I encounter all too frequently in development policy circles.
Unfortunately for those who love the idea of small farmers, it is highly unlikely that small farmers can feed the world. It is much more fruitful to think of organic, locally grown agricultural commodities as a luxury good that some of us are fortunate enough to be able to afford than it is to try to impose one’s preferences on people who cannot afford it. This might be the topic of a future post.