This is just fucked up. The depression-era farm subsidy programs (still in effect) are some of the most divisive and ass-backward pieces of legislation existing within the borders of our country today. If you are interested in learning more, the Washington Post is running a prolific exposé (in a series of articles starting back in July) addressing this snowballing legislative fuckup. Yes, Congressional pandering (and likely apathy) is killing the free-market system - and trampling some enterprising farmers to boot. It has been pointed out time and time again that free-market economics will create and foster competition, whereby creating "wins" for both producers and consumers. This is just another shining example:

From The Washington Post:

Dairy Industry Crushed Innovator Who Bested Price-Control System

Washington Post Staff Writers
Sunday, December 10, 2006; Page A01

In the summer of 2003, shoppers in Southern California began getting a break on the price of milk.

A maverick dairyman named Hein Hettinga started bottling his own milk and selling it for as much as 20 cents a gallon less than the competition, exercising his right to work outside the rigid system that has controlled U.S. milk production for almost 70 years. Soon the effects were rippling through the state, helping to hold down retail prices at supermarkets and warehouse stores.

That was when a coalition of giant milk companies and dairies, along with their congressional allies, decided to crush Hettinga's initiative. For three years, the milk lobby spent millions of dollars on lobbying and campaign contributions and made deals with lawmakers, including incoming Senate Majority Leader Harry M. Reid

(D-Nev.).

Last March, Congress passed a law reshaping the Western milk market and essentially ending Hettinga's experiment -- all without a single congressional hearing.

"They wanted to make sure there would be no more Heins," said Mary Keough Ledman, a dairy economist who observed the battle.

Hettinga, who ran a big business and was no political innocent, fought back with his own lobbyists and alliances with lawmakers. But he found he was no match for the dairy lobby.

"I had an awakening," the 64-year-old Dutch-born dairyman said. "It's not totally free enterprise in the United States."

Most U.S. dairy farmers work within a government system set up in the 1930s to give thousands of small dairies a guaranteed market for their milk and to even out prices for consumers. Farmers who participate in regional pools operated by the federal government or the states deliver raw milk to cooperatives or food processors. They get a guaranteed price, whether the milk ends up in a gallon jug, cheese, butter or ice cream. In Arizona and other federally regulated regions, the Agriculture Department uses a formula to set the price processors pay for raw milk, issuing "milk marketing orders."

Developed for a bygone era of small dairies and decentralized milk plants, the system lives on when 3,000-cow dairies are not uncommon and huge cooperatives and food companies dominate the business.

Business groups, fiscal conservatives and some dairy organizations have called for Congress to overhaul the complex system of protections and subsidies, which they say is costly to taxpayers and consumers. A recent USDA study acknowledged that "dairy programs raise the retail price" of milk. The watchdog group Citizens Against Government Waste estimates that the programs cost U.S. consumers at least $1.5 billion a year.

The 1937 law allowed "producer-handlers" -- dairy farmers who bottle milk from only their own cows -- to operate outside the pools. But it was risky for a farm to do this because it might end up with more milk than it could sell. Most of these outsiders were small.

Hettinga started out as a hired hand in the Dutch American dairies of Southern California, where his family emigrated after World War II. He soon figured out he could buy cows with injured hooves, then fix and sell them at a profit that exceeded his weekly paycheck.

Click here to read on to Page 2 thru 5----->

Emphasis mine. Now, I'm no economic expert, but I do like to talk out my ass (especially when I know I am right). This is total bullshit. There is no one in America (except perhaps some big milk moguls) that shouldn't be totally fucked off about this. I know I am, and if you're not, kindly chime in and explain "why," just for kicks.
9 Comments:
Blogger Tim Zank said...
I concur o' pissed off one. The estimate on waste is only 1.5 Bil.....?? As I have mentioned many times before on different subjects...this is only 1...just 1 fucked up program....a small small part of a gazillion more such programs. If we were to shit-can a small portion of these wasteful programs (of which there are literally thousands) you'd never have to raise or even implement a tax ever again....

Over and over again I've said...."STOP SPENDING MY MONEY ON STUPID SHIT"......
sometimes my family listens...my congressman never listens........

Blogger Andrew Kaduk said...
$1.5 Billion...just for the milk shenanigans. For fucks sake....MILK! Talk about a goddamn "poor tax!" Vastly more poor people consume milk than do cigarettes!

Blogger LP Mike Sylvester said...
This is just one program of many like it. Agricultural subsidies are AWFUL.

Dems and Reps both love them...

The Republicans have increased them every bit as much as the Democrats did...

Just a waste of our money...

Mike Sylvester

Blogger Tim Zank said...
Oh, and for what it's worth...rather than a communist, that actually makes Harry Reid a greedy money grubbing capitalist whore for pandering......Gee, you guys always said only republicans do that!

Maybe it's all part of some "master plan" to BAN drinking MILK in PUBLIC PLACES...???


LMAO!

B.G.

Blogger Andrew Kaduk said...
Yeah, so we don't offend people who can't afford milk.

Blogger Angry White Boy said...
Notice no leftards are commenting. Mmmm

Blogger Tim Zank said...
That is curious, now ain't it?

Blogger Stan Matuska said...
I am a leftard.
I think Mike said it best "Dems and Reps both love them..."
I strongly disagree that lobyists are helpful in any way!!! I think they should not be allowed to exists.

I don't see this as a Democrat or Republican issue at all. I see it as a problem that has grown for years and years as in this case, and should be re-evaluated as some subsidies can be used for proper reasons.

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