Boston weighs government-owned grocery stores amid rising food costs: report

Officials in Boston are reportedly studying the concept of creating government-owned grocery stores to support residents suffering from the coronavirus High food costs.

City Council Leader Ruthsay Luigon and Councilor Liz Brydon requested a hearing to explore the idea – stressing that it was not inspired by a similar proposal from New York City Social Democratic mayoral candidate Zahran Mamdani, local news outlet Boston 25 News reported.

“The role of government is to step in when the market fails our residents,” Luigion told Boston 25 News. “The idea of ​​government-sponsored, subsidized grocery stores is not a new idea.”

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Luigon pointed to examples of similar grocery initiatives in Madison, Wisconsin, and Atlanta, Georgia, Boston 25 News reported.

“There is a certain level of urgency because of federal policy that is cutting SNAP benefits,” Brydon told Boston 25 News. “Those who are not food insecure sometimes forget the hardships that ordinary working families may face.”

An estimated 37% of Massachusetts households faced food insecurity this year — nearly double the 19% reported in 2019, according to Boston 25 News, citing a report from the Food Bank of Greater Boston.

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However, one grocery industry expert says city-run stores could hurt existing businesses.

Peter Brennan, executive director of the New England Association of Convenience Stores and Energy Marketers, said using taxpayer money for city-run grocery stores would be a “job killer in our communities,” according to Boston 25 News.

“Our mom-and-pop stores operate on razor-thin profit margins,” Brennan told Boston 25 News. “They are constantly facing rising costs, stricter regulations, and relentless economic pressures.” “The City of Boston must do more to support these small businesses that create jobs, support our communities, and provide meals, goods and health services to our neighborhoods. Supporting small businesses by lowering taxes and fees and creating programs to help businesses become self-sufficient is a much better use of our tax dollars.”

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Several other city council members reportedly added their names to the hearing order, which has been sent to the committee for consideration. The hearing could take place before the end of the year, according to Boston 25 News.

Mamdani defended a city-run network of grocery stores. His proposal would create five publicly funded, rent- and tax-exempt sites across New York City, according to Boston 25 News.

“You can’t lower your grocery bills by having government-run stores,” Ryan Bourne, chief economist at the libertarian-leaning Cato Research Institute, told Fox Business earlier this year. “Government-run entities have no market discipline – no need to earn profits, compete, or serve customers efficiently. This leads to inflated costs, empty shelves, and a lack of accountability.”

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Ruthsay Luigon, Liz Brydon and Peter Brennan did not immediately respond to FOX Business’ request for comment.

FOX Business’ Amanda Macias contributed to this report.