John Stossel: The milk of human blindness
Congress is working on a farm bill, which, among other things, will set limits on how high or low milk prices can be in different regions of the country.
The dairy farmers say some dairy farms lose money, which proves milk prices are too low. But cheesemakers say they can barely stay in business, proving milk prices are too high.
Prices are not just money. They're information. Rising prices tell farmers to produce more; that increases supply and prices go back down. Falling prices tell producers to invest in other products. This system works well for plums, peaches, cars and most everything we buy.
Vandenheuvel says cows can't be subject to market demand because "there are several years of lead time between when you decide to buy a cow and when that cow produces milk."
I say, so what? It's not "lead time" or being "perishable" or even being "necessary" that makes milk unique. Plums and newspapers are perishable and harvested daily. It takes long lead times to build assembly lines to make cars. No entrepreneur has a guarantee of market demand once the factory is complete. All business is risky.
Give me a break. It's in planned economies, like Venezuela, North Korea and the former Soviet Union that shortages occur. When politicians micromanage markets, consumers suffer.
John Stossel is host of "Stossel" on the Fox Business Network. He's the author of "No They Can't! Why Government Fails, but Individuals Succeed."
READER COMMENTS: 13
- PSNH discount carries a cost: Loyal customers pay more, those who switch offered lower rate - 7
- Wind company’s tower permit delayed again - 3
- Protesters decry 4.2-cent increase to statewide gas tax - 0
- New Hampshire motorists decry hike in fuel tax - 26
- UPDATED: Power restored after 2,000 customers go without in Manchester's downtown - 0
- Company behind Groton wind plant promotes emergency plan - 0
- Citizens protest Hollis pipeline as town awaits project details - 1
- Spanish explosives distributor to lease Alexandria land to wind farm developer - 2
- Boost for Northern Pass partners? - 26
READER COMMENTS: 0
- Speeding stop leads to drug and alcohol charges in Hollis - 0
- Allen Lessels on Motor Sports: Youngsters eye NHMS - 0
- Mark Hayward's City Matters: Manchester's bike culture shifts into high gear - 0
- Ignoring Lyme: What are state, towns doing? - 1
- Dave D'Onofrio's Sox Beat: Red Sox makeover underway - 1
- Tom Herzig's Trackside: MacDonald has NHMS track experience - 0
- Drew Cline: Scott Brown plans to win over NH one handshake at a time - 7
- Anthony M. Kay - 0
- Walsh paces Sweeney Post past Laconia - 0
132-mph street racers blow by trooper in Nashua, one of two arrested; motorcyclist arrested on I-93 doing 107 mph
Police say Manchester woman arrested for punching ex-boyfriend during custody exchange in Walmart parking lot
Bikers say under-30 generation isn't interested, and can't afford many of the top motorcycles
Mount Washington College to close 2 campuses
Ban fireworks? Get serious
GOP criticizes Shaheen over gas tax
Ignoring Lyme: What are state, towns doing?
Sentence fragment: Coco's cuckoo release