Jarhead
Gold Member
- Jan 11, 2010
- 20,670
- 2,378
You are paying $5 a gallon for milk because without government subsidies, you would be paying $7 a gallon
http://www.csmonitor.com/USA/Politi...rm-bill-impasse-could-send-US-off-dairy-cliff.
Actually without governmental manipulation of the market we would be paying far less. Prices are propped up to make sure farmers do not go out of business. If you read the article $7 a gallon milk is a POSSIBLE outcome of this. The other is more farmers actually farm again, leading to a glut on the market and price coming DOWN.
Ok, so let's say the prices are not propped up and 75% of dairy farmers go out of business. NOW milk is $14 a gallon.
Really?
By the time the prices hit 14 a galloon, so many new farmers would have hit the marketplace, it would never reach 14 a gallon.
Do you see the err of your question?