The visible hand in economics

Dairy farmers and their bling

Posted on: July 25, 2007

So, it looks like the dairy farmer is doing well.  This raises an interesting quesiton.  Are dairy farmers doing well because of:

a) Government help

b) The fact that their milk is sold by a monopoly

c) Favourable world commodity prices

d) Some mix of all three (note you can give a zero probablity to one of the options when doing this)

I think its mainly c).  Now the real issue I’d like us to try and figure out, is whether the government provided a positive role in the current dairy boom.  Has the government provided some structural assistance that could not of been provided in the free market?

Personally I doubt it.  But if someone can make a convincing argument for it, that would be pretty cool 😉

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Add to Google
%d bloggers like this: