Wed, 19 October 2016
Someone hit me on twitter yesterday with the link to an article talking about the current glut of Milk we have here in the U.S. Apparently this listener has been getting emails suggesting this is an example of a market failure.
I chuckle at the notion. Certainly, we can point to examples in Russia and Germany where central authority produced far too much of a good and failed to provide enough of another. How does this example in Milk differ from those?
That's what I'm going to focus on today. I hope to give you some insight into why these things happen in a free market and how it's different from the overproduction in communist or socialist countries.