Sunday, August 12, 2007


What's up with the price of milk?

Milk prices hit a record last month in the United States, with consumers paying an average $3.80 a gallon, compared to $3.29 in January. The U.S. Department of Agriculture is forecasting that milk prices will remain high throughout the year.

Now, this milk sit-chee-a-shun has got me to thinkin'; and I have a few questions for anyone who cares to answer 'em for me:

How come I can't find a poll in which 20 percent of Americans blame the Bush Administration for the rising cost of milk? (A Gallup poll conducted last summer indicated that 20 percent of the voting public blamed President Bush for high gas prices.)

When should we expect congressional hearings seeking to expose nefarious price-gouging schemes initiated by the dairy industry's corporate honchos?

When will Senator Harry "Sleepin' at the Ritz" Reid and Representative Nancy "Madame Moonbat" Pelosi suggest that America should dip into its "Strategic Milk Reserve" ... ?

All kidding aside, the spike in prices for dairy products, due to exploding demand in China and higher prices for cattle feed, is no different from this past summer's spike in gasoline prices, which was caused by a worldwide increase in the price of oil and decreased refining capabilities.

Americans who consume dairy products may not (don't) know it, but they are receiving a valuable tutorial in basic economics: growing demand, coupled with supply pressure, will increase the cost of goods and services.

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