American Farming subsidies to end- Obama worst president ever?

[Kasz216]

DirtyP2002 said:

Baalzamon said:

DirtyP2002 said:

because there is no competition between farmers?

Explain how you feel competition will affect this?

Simple: It is a market like polypol-market. You have a lot of producers, which produce more or less the same product (farmers / milk) and you have a lot of consumers. The farmers compete with each other --> that will have an impact on the price.

You just can't sell your product fo $29 when everyone else is selling it for $20. This is macroeconomics so ignore those local, time, taste preferences. Your not going to sell one gallon. If you offer it for $19 though, you will sell all your supply.

The problem is though that Milk has a price floor set by the government.  So you by law can't sell your milk for less.

That's the issue.  The pricefloor woud quadruple if this doesn't pass.