The article below reveals a fact that many people simply do not realize. Can you make the connection? Hint: The key phrases are boldened by me.
New York Post, 6/25/2008, entitled, "Shoppers get milked"
For some reason, the online version of the article was cut short. I've quoted the entire article from the newspaper itself:
June 25, 2008
Holy cow, milk prices are going through the barn roof!
The state-controlled price for a gallon of milk in New York City will rise to $4.37 next Tuesday, state regulators said, in the wake of rising fuel costs and diminishing corn supplies.
"It's a vicious cycle," said Henry Beyer, president of Beyer Farms and Tuscan Dairy, based in Jamaica, Queens.
"The cost of just producing the milk on the farm is going up...and it eventually gets passed down to the consumers."
State agriculture authorities set the loose ceiling of milk prices, based on the cost of farm production. Individual stores can top the milk-price threshold - now at $3.93 a gallon - if they can show financial hardships, such as extraordinarily high wholesale, rent or delivery costs.
So in practice, the state-set threshold generally applies to the large supermarkets, while neighborhood bodegas tend to have higher prices, officials said.
An industry analyst predicted the price of a gallon of milk should stay in the $4.37 range for the rest of 2008.
When are politicians going to stop screwing around with the economy by price fixing? When are they going to wise up and allow the Free Market to work its magic, so that supply and demand could meet naturally and prices will drop? Of course, there are too many factors involved in our economic mess to post here, but the finger of truth points to the government as the cause of all our economic woes. Statism will be the death of us.