Simple Confusion

            There is evidently confusion about what constitutes a “free market.”  If a market commodity’s quantity of production is restricted by regulations and/or if that quantity of production is influenced by tax policies, it is not a free market.  If measures are put into place to “stabilize prices” either by a trade group or a government, it is not a free market.  If government trade policy prevents competitive imports and/or if producers are subsidized in hedging against production failure, it is not a free market.

            The most recent confusion was exhibited by someone talking about government intervention in the dairy industry.  The speaker said he wanted the free dairy market to be unhindered by too much government control.  The dairy industry is not a free market industry.  It is a managed market industry.  Anyone who says it is a free market endeavor is simply confused. 

When you hear the hue and cry for government to leave dairy farmers alone to function in a free market, they are not talking about subsidies and tax breaks and price fixing.  Nobody in the industry (and perhaps nobody who consumes dairy products) wants those to go away.  That part of the managed market is OK.

Congress, assuming they can function, will patch it together in the farm bill.  Meanwhile around here, we think American industry spokespeople should up the integrity with which they represent hard working producers.  Stop waving the “free market” flag and tell it like it really is, or talk about something else.