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How The Meat Industry Turned Abuse Into A Business Model - Grist
How The Meat Industry Turned Abuse Into A Business Model - Grist
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12/22/23, 10:43 PM How the meat industry turned abuse into a business model | Grist
Tom Philpott
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Cross-
posted
from
Mother
Jones.
As a
long-
time
student
of the
meat
industry
, I read
Ted The meat industry routinely abuses workers and animals.
Genowa
ys’ extraordinary article on conditions at the “head table” of a
factory-scale pig-processing plant with delight. As a human
being, my reaction was revulsion.
In a singleAlllong piece, Genoways
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lays out$15/mo
$10/mo the crudeOther
history Donate
of U.S.
meat over the past 80 years. We get the unionization of the kill
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The surface answer is, of course, because they can. After the
unions evaporated, the meatpacking workforce became extremely
vulnerable. By the ’90s, meatpacking had become such an awful
job that native-born Americans abandoned the industry as quickly
as they could. Undocumented workers from Mexico and points
south, fleeing agrarian decline in those regions, filled the void.
Unprotected by unions, one brush with authority away from
deportation, undocumented workers are easy targets for the
predatory practices of powerful employers, as Genoways
demonstrates.
But there are deeper forces than naked power on display.
Corporate profit strategy shifted in the wake of the 1970s — era
stagflation crisis — in a way that transformed not just
meatpacking but also the broader
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business
$10/mo
landscape.
$15/mo
Companies
Other Donate
could no longer assume they had the power to raise prices to
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burnish the bottom line. Wage inflation, and the fear of it,
convinced them that holding prices down was the better idea.
Profit would be eked out by selling ever greater volumes of stuff —
and by holding costs, including labor costs, to a bare minimum.
As Barry C. Lynn showed in a luminous 2006 Harper’s essay —
later expanded into the book Cornered: The New Monopoly
Capitalism and the Economics of Destruction — the new profit
regime required a new antirust regime. U.S. antitrust authorities
still operated under Progressive-era policies that had them
looking for instances of anti-competitive behavior. There are two
ways companies wield improper market power. The first is
monopoly: they use their market heft to impose artificially high
prices on consumers, like, say, OPEC sometimes does with oil.
The second is called monopsony. That’s when dominant
companies use their weight to squeeze their suppliers —
everything from their own workforces to the companies that sell
them inputs — into giving them better terms.
In the ’80s under Reagan, the authorities essentially stopped
prosecuting monopsony and focused only on monopoly, Lynn
shows. It was a convenient change for Big Business, because
gouging consumers on price was now passé; the path to profit
growth lay in gouging suppliers on cost. The goal was to get as big
as possible and sell products as cheaply as possible, keeping
volume high and the the antitrust cops at bay; and impose
relentless pressure on cost. The strategy sparked a massive wave of
consolidation, as companies bought each other out, scaled up,
and/or merged in a rush to grab market share.
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Now, unlike other recent cases of abuse exposure, this one isn’t
likely to result in the responsible company declaring the workers
involved “bad apples” and firing them. Most of what you see in
the video is entirely routine and industry-standard — like the
practice of
All cutting
donations off the tail of$10/mo
TRIPLED! piglets with a pair Other
$15/mo of shearsDonate
and
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