Freakonomics Radio

How the Supermarket Helped America Win the Cold War (Ep. 386 Rebroadcast)

Aug 6, 2020
Shane Hamilton, an American historian, and Peter Timmer, a retired Harvard economist, dive into the surprising role of supermarkets in shaping U.S. agricultural policy during the Cold War. They explore how supermarkets became symbols of capitalist abundance, contrasting starkly with Soviet scarcity. The conversation reveals the hidden costs of agricultural policies, from industrial meat production to their effects on family farms. Listeners will contemplate the far-reaching implications of these changes on today’s food landscape and consumer behavior.
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ANECDOTE

Supermarket Diplomacy

  • Khrushchev's visit to a US supermarket exhibit in 1959 was meant to showcase American abundance.
  • He was so impressed that he bought the entire exhibit and hired a consultant to help build socialist supermarkets.
INSIGHT

Soviet Agriculture's Downfall

  • The Soviets struggled to modernize their agriculture due to management and marketing problems, not technology.
  • This agricultural failure contributed to the downfall of the Soviet Union.
INSIGHT

Duplicity of the Free Market

  • The US government disguised its heavy investment in agriculture as a free market success.
  • This duplicity was used in propaganda against the Soviet Union during the Cold War.
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