You
know that they are going to fix this one, but a little unwanted drama
may develop. Otherwise, read this item to just understand what is
going on if someone gets excited about it all.
Legislative
gamesmanship and its like is becoming decidedly wearing, particularly
when problems are hoisted up as an outright cover to churn through a
wish list of earmarks.
The
US economic system demands serious reform and general overhaul. I
continue to see no meaningful progress at all while the general
economy remains deflated with little serious recovery even yet four
years after the credit collapse. The only positive thing out there
is that it has become possible to do business in the credit world
that is not burdened by the past.
Get Ready for the
Dairy Cliff
DASHIELL BENNETT2,225
ViewsDEC 21, 2012
Lost in all the
anxiety over the Fiscal Cliff, is another little noticed deadline
that could force you to pay double the price for a gallon of milk
come January 1. The New York Times reminds everyone today
that Congress still hasn't renewed the 2008 farming bill,
that establishes subsidies and other agriculture programs
like crop insurance, nutrition programs, and even food stamps.
Without the bill, which must be renewed every five years, our entire
food system could get thrown out of whack. The Times wasn't
the first to point his out, but others outlets shouting about it
hasn't made Congress take notice.
One provision in
particular could crush every non-lactose intolerant family
in America. The current farm bill supersedes an outdated law
from 1949, that requires the government to buy milk at certain
prices, in order to prop up the market and support farmers. Without
the new farm bill, that old bill—and its poorly devised formulas
based on antiquated production methods—would once again be the law
of the land, and Washington could be forced to buy milk for as
much as $8 a gallon, more than double the current market rate.
That would be
(temporarily) great for drought-stricken farmers, who would naturally
flood the government with high-priced milk, but would soon create
massive shortages that would drive up the price for everyone else.
Other companies that rely on milk—cheese, butter and yogurt
makers—would go overseas to find new suppliers, upsetting supply
chains even more. And taxpayers would get nailed on both ends:
Throwing away the government's money on milk it doesn't need, while
paying more at the grocery store for the products they do.
The irony is that the
"dairy cliff" was intentionally built into the
existing farm bill as way to scare lawmakers into making it sure it
always gets renewed on time. But with the fiscal cliff trying the
same trick on a much larger scale, and every political fight becoming
a cutthroat game of chicken, the farm bill has fallen by the wayside.
Come January 1, we could all be screaming for outrageously priced ice
cream.
No comments:
Post a Comment