… and now they have to hang by it. I’m referring to the comment made about my milk post. The dairy industy managed to have the government set prices for their products above what they would normally be if they were in direct competition with each other. This has several effects. First, the milk producers make much more money than they otherwise would (this is how they generate enough money to bri… I mean lobby the government). The next thing that the artifically high prices do is it results in too much product being made. Normally this wouldn’t be a problem, they would just have to lower their price until it sold. Because of the dairy cartel’s power, they also set it up so that the government (i.e. the tax payers) buy up all of the surplus. The other effect is that there are too many producers (see the above mentioned surplus). This allows marginal (or outright inefficient) farms to stay in the business. It’s bad enough that we have to pay them for not only the products we want to buy, but also all the leftovers. When we pay people to make things that no one buys, they certainly do not have the right to complain that they are not making enough money.
Break up the milk cartels, get them off our backs!!!