#protected class

Are Muslims the new Left-wing protected class? Critical social media posts may soon get Americans banned

By Jon Dougherty

Increasingly, it appears as though the Democratic Left in America has chosen Muslims as the new “protected class,” according to recent actions taken by the major social media platforms.

A post by The Gateway Pundit‘s Cristina Laila noted that she was warned recently by Twitter after posting a message which called for banning burqas — an outer garment worn by women in some…

If you are a shareholder in either Amazon (AMZN) or Whole Foods Market (WFM), their combination ought to please you. 

Both stocks rose on the merger news while the rest of the grocery industry dropped. But in the long run, I’m not sure their deal will work out well for any of us.

Here’s why.

Whole Foods Won’t Become Logistic Hub

No one outside Amazon (and possibly within it) really knows what Jeff Bezos plans for Whole Foods.

We do know he’s been trying to break into groceries for years. We also know he sometimes acquires companies and then leaves them mostly alone. Amazon bought Zappos in 2009, but today it’s still Zappos.

Much of the Whole Foods analysis revolves around Amazon’s using the stores as a kind of delivery hub or pick-up zone. I don’t think that will happen.

First, the stores don’t have much extra space. They can be grocery stores or warehouses but not both. Second, Whole Foods stores are usually in high-end shopping centers. Amazon could probably find lower-rent space not too far away if it wanted logistics hubs.

So, I think Whole Foods stores will still be grocery stores. But they will change.

High Tech Meets Whole Foods

They’ll get new technology. Amazon Go could be the model: a grocery store with no check-out. You get an app that tracks you through the store, identifies whatever you pick up, and charges you for it.

That would work pretty well at Whole Foods—they’re already halfway there.

Consider the price labels on their shelves. Instead of paper tags, most Whole Food products have these little digital devices. Presumably they’re networked and a central office can change them instantly.

We also know that Amazon—the online part of it—uses dynamic pricing that can change frequently. Whole Foods is already set up to do the same in its physical stores. You can bet Jeff Bezos noticed.

The genius of Amazon Prime is that the free shipping reduces your price sensitivity. They don’t force Prime on you, but they don’t need to. Many folks search for what they want and filter by the items that are Prime eligible, then choose.

They never know whether a less expensive non-Prime option is available.

I suspect Whole Foods under Amazon will become a more sophisticated version of what it is now: a premium-price grocery store catering to well-off people. They’ll either dash in to grab what they want or have it delivered. In either case, this service will further insulate the Protected class from once-common experiences.

Investment Implications

The process has been underway for some time.

About a year ago, my colleague Robert Ross and I started seeing trading opportunities in the low-end retailers and dollar stores. Another one popped up on our screens after the Amazon-Whole Foods announcement sent grocery stocks down.

As John Mauldin keeps saying, we’re overdue for recession. I agree, and I think it makes sense to own stocks that tend to do well in times of economic weakness. The dollar stores are tailor-made for that. But others see the opportunity, too.

Aldi and Lidl are European grocery chains with big plans to expand in the US. I’ve never lived where they had stores, so I have no personal knowledge; but Robert has, and he describes Aldi as “Dollar General with produce and meat.” The atmosphere is spartan, but the prices are apparently low.

See where this is going?

One of the fascinations of economics is the way market forces nudge people and businesses in new directions. Unraveling cause and effect can be tough, but things don’t happen randomly. Every trend is really a long chain of actions and reactions.

The Protected class’s increasing separation from mainstream society is a trend that we increasingly see reflected in retailing. Stores that cater to either the top or bottom extremes—luxury retailers and dollar stores—are doing well. Those that cater to the middle are struggling.

Now, that trend is reaching the grocery segment.

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Federal Court: Gay Isn’t a Protected Class Under Title VII

Judge:

Source: Federal Court: Gay Isn’t a Protected Class Under Title VII

Federal Court: Gay Isn’t a Protected Class Under Title VII

Judge:

Source: Federal Court: Gay Isn’t a Protected Class Under Title VII

So, I think we can all agree that police brutality is a bad thing. Except for you in the back. Yeah, I see you. Stick around, maybe you'll learn something. What we probably wouldn't agree on is why it exists in the first place.

Some of you would probably say that all cops are just terrible people and we would all be better off without them. Well, I can't say I don't sympathize with your position. Others would say that it's just a few bad apples, overlooking the rest of the saying about spoiling the bunch. Most cops really are good people just trying to make their corner of the world safer. I would concede this point as well.

But PM, you might be saying, how can you agree with both sides? Aren't those ideas mutually exclusive? Well, hypothetical straw person, not at all, though you could be forgiven for thinking so. Plenty of people that want to become police officers really do just want to make their corner of the world a better place. I would tend to say that this isn't a very good way to do it, but I can grant that their heart is probably in the right place. But, as the saying goes, the road to hell is paved with good intentions.

This isn't to say that cops are all saints. That kind of power is very attractive to people inflicted with a peculiar sense of smallness. There are people that are just desperate for a bit of weight to thrown around. I won't speculate as to why, the why isn't important right now. What is important is, why does this peculiar role of responsibility hold such an appeal to the belligerently inclined? Because, dear reader, the police, now as always, constitute a protected class.

Now, if you've been living under a rock (read: had a sheltered upbringing), you might not know what this means, or if you do you weren't raised to believe such a thing could exist in America. Well, hypothetical ignorant person, such a thing can and does exist.

Consider, purely as a thought exercise, that a cop attacks me unprovoked and I kill them in self-defense? Can I rely on the courts to see my side of things, or am I more than likely going to spend the rest of my life in a concrete box? That would be bad enough on its own, but lets consider the inverse. Suppose I attack a cop unprovoked and the cop kills me in self-defense. Will that cop receive the same response as me, a non-cop, for identical actions? I think you would agree that any penalty at all is unlikely.

Recently I had the opportunity to ask officers from two different departments what the proper protocol was for placing an officer under citizen's arrest. As it turns out, and I'm sure you could have guessed this, no such exists. They recommended that, should I ever see an officer abusing their authority, that I should contact the district attorney. A citizen has no clearly legal recourse. We are categorically disallowed from intervening in cops behaving poorly. This is the definition of a protected class, and this is not acceptable.

There's more though. The police are not only a legally protected class, they are also a socially protected class. Consider the earlier example. A cop I was forced to kill in self-defense would still be considered a hero that died in the line of duty by so many people. A me that a cop was forced to kill in self defense would be seen as a dangerous maniac, if not even further demonized. A few might see me as a martyr, but even I would look at them askance.