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Saturday, December 22, 2012

Holy Cow!

So, a couple of weeks ago, you might have noticed that the price of milk jumped an entire $1 per gallon.

I was curious, so I looked it up.

It turns out that the government subsidy on milk has expired because Congress has fiddle farted around and can't agree on a simple thing like the price of milk.  This means that the price of milk is no longer controlled.  The laws of supply and demand are kicking in and the farmers are jacking up the price of milk to get as many dollars as they can for the milk.

This of course means that, as the price of milk continues to rise because farmers want the most they can get for it, fewer people will be purchasing milk.  THIS DOES INCLUDE CHEESE, which is practically a staple in America- American's put cheese on everything.  Anyway, as fewer people buy the milk because the price is so high, the farmers will be getting paid less, there by leading to a surplus of milk.  But, wait- don't get your hopes up yet.  You won't see the price drop again.  What will happen is that the farmers will do away with the surplus.  That means that hamburger might be at a great price next June, but milk will most likely stay at $7/gallon unless the US government can take its head out of its, well, you know.

This is, evidently, going to be a wide spread epidemic as most of the policies in the government expire and lead to uncontrolled competition.  Spending will continue to drop to an all time low, as people won't be able to afford the normal purchases.  This leads to an even worse economy.

This is why a 100% capitalistic market is bad for the consumer.  Don't let anyone tell you differently.





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