Welcome to 2013, happy new year!!
Have you heard yet that if the government doesn’t pass the Farm bill that was set to expire on 9-30-2012 we could have five to six-dollar per gallon milk prices next year? It would mean that the government would have to use federal price supports which would revert back to the 1949 prices of certain commodities. Milk being one of such commodities. Why?
For an overly simplistic way to put it… portions of the farm-bill is nothing but an insurance to farmers in being able to have stable prices to their commodities, in case of loss due to natural disasters and drought, as well as in lower price periods of times.
But then some would ask if the federal government should be involved in market manipulations. Every time the government gets involved in the free markets for whatever reasons the markets act in an unnatural way. I’m sure you have heard of the boom to bust economic cycles? These occur when markets are manipulated no matter who induces the manipulations government or privet forces involved in the markets.
Providing stable prices is one thing, but manipulating the markets in going back in time, when the work on the farms were less automated and therefore more labor intensive is plan crazy. automatons of all businesses have also brought lower pricing to the consumers of such products. When accounting for the state of the modern farm and its present automated form of farming and the impact on markets. Shouldn’t we also be considering food stamps, price floors, and subsidized insurance, isn’t there something for everyone. Instead of complaining that the line of Americans waiting for a hand out from the government grows ever longer, why don’t we acknowledge the role that government plays in controlling markets? What once were free-markets, is now controlled and subsidized, and manipulated with policies designed to creating fantasy market prices and false supply and demand. Once we get past that concept, we can find ways to make government more efficient. Rather then accepting a government manipulated free market systems that relies on government spending as one of its largest portions of the economy as a whole.
Of course, there is no ability to make necessary changes and find real solutions when the children are simply yelling back and forth and having temper tantrums without finding any real solutions; giving the impression of just working hard enough to look like they’re doing their jobs instead of failing to do their jobs. Second, if government can set subsidized pricing to the 1949 levels, then we could rewrite the farm-bill to account for the modernization to the way we farm and reflect new and fair price levels for the purposes of setting up insurances designed for the fair price and the production of a stable food supply.
The current price supports are as follows below:
federal price supports. Those prices, the rates at which the government pays for certain commodities, would revert back to 1949 levels. For the most part, those were much higher, especially in areas like wheat ($13.58 per bushel in 1949, more like $6 today) and dairy products ($38.63 per hundredweight in 1949, closer to $10 today). The government would pay much more for those commodities, though not all of them; federal price supports for things like soybeans didn’t exist in 1949. This will absolutely drive up the price that businesses will have to pay for the same commodities, and that will factor into your monthly food bill.
Via @nprnews: So What Happens If The Farm Bill Expires? Not Much, Right Away http://n.pr/U9vxy5
The 2008 farm bill, which provides funding for a variety of nutrition programs, including the Supplemental Nutrition Assistance Program (formerly food stamps), as well as payments to farmers and agricultural programs, will technically expire Sept. 30.
So what does it mean if Congress just leaves it on the table? In theory, some fairly scary things. For example, in the absence of either a new bill or an extension of the 2008 law, federal price supports revert to their 1949 levels.
Some farmers would be big winners — the government would pay huge bonuses for wheat, for example — while some farmers would get nothing at all. That’s because some commodities, including soybeans, were added to the list of those supported by government after 1949.
“At that point, we’ll have $38 milk,” Rep. Collin Peterson, D-Minn., told a rally at the Capitol last week. “So what do you dairy farmers think about that?” (That $38 refers to the price per 100 pound weight — the wholesale pricing unit. Basically, it works out to nearly four times what dairy farmers are guaranteed now.)
What it comes down to is the price and the markets are being manipulated by a pricing structure that is out dated and out of touch with present day conditions of government interventions. Pricing disasters for the consumer at the grocery store level has all been baked into the equation. Milk could go to that five to six-dollar range; this will affect everything made with milk or milk products as an additive in it.
Remember this crisis is nothing but a government created one by market manipulation and therefore the government is manipulating you the consumer with price of a commodity as well as through the traditional taxation of your income. But that sort of thing always happens when the citizenry cries over spilled milk and expects government to ease the pain. Somehow we misunderstand that government makes the rules, yet when it comes to these disasters or modern crisis’s, it was something beyond their control, or beyond their abilities to see past their bad policy’s. Unintended consequences seem to just happen like an occasional eruption of a volcano, instead of recognizing the problem with those Politian’s who make bad policies without the abilities of critical thinking, asking what could happen if we do this?
Yet somehow the public for the most part falls for the lies, false perceptions, that all Politian’s give out like candy at Halloween. Their job is to manipulate people while give them the perception of being free.
It is truly amazing how much freedom we are willing to give up for the fantasy that the government can control all of the uncertainty in an uncertain world. If you think this is reasonable then why do we have cloudy and rainy days? Couldn’t, or shouldn’t the government just use its controlling powers to give out sunshine to everyone through equal redistribution of the weather? sounds unreasonable? But then we expect the government to guarantee price stability of products that rely heavily on the weather in coming to market. Net alone the money government spends to pay farmers not to grow crops in order to boost price or maintain prices at current levels. Where is true market controls of free-market supply and demand economic laws in play un molested?