Friday, March 4, 2011

Myths Live Forever

(click on image to enlarge)

In the DIAC report is a common myth"

"To offset surpluses generated by aggressive support price policies of the late 1970s, from 1981 21 to 1990, dairy markets were affected by a variety of significant government programs, including large 22 product purchases and two new, temporary supply management programs."
Page 14

So, if price drives production and government purchases, why did government purchases drop off after the price to farms fell to next to nothing?

No comments:

Post a Comment