Monday, July 27, 2015

More on Supply Management

I went shopping today, which is enough to deepen my hostility to supply management.  How so?

First, $4 a liter for milk.


$10 for a big block of monterrey jack.... or any other cheese.  Two problems with this: the price and the selection.  $10 is way too much.  But most of the cheese is in this very big size, so that means that I have to pay a lot and then use about half or a bit more and then the rest turns blue before I can finish it.

And that is the problem with cartels--they limit price AND selection--as they game the products to maximize their profits without the fear of competition.  With competition, I might get a better selection of sizes and I might get a better price.  With a government sanctioned cartel?  Neither.

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