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It boggles the mind that MILK costs more per gallon than gasoline!! Do we need to drill for more cows?

2007-01-08 01:59:11 · 19 answers · asked by Mike E 3 in Politics & Government Other - Politics & Government

19 answers

First of all milk doesn't cost more than gasoline. But it sure does cost more than its relative value (utility) to consumers. It is also priced higher than supply and demand in the economy dictates. That is because the government heavily subsidizes most agricultural and farm products in the name of food security and independence. The government and a lot of other people, and especially the farmers think that the agricultural and farm businesses shouldn't be exposed to fair and sometimes brutal market conditions, because they might go out of business and yield to cheaper foreign food suppliers. That would hinder the US independence and sovereignty, especially in times of war. The government also protects the farmers from the "evils of the market" by applying price floors for their products, e.g. minimum price legally charged. Subsidies and price controls, like these, and other price floors like minimum wages and price ceilings like rent controls are designed to distort the market to benefit certain groups of people. The reasons behind them are not necessarily sound, but certainly debatable.

2007-01-08 02:23:13 · answer #1 · answered by Erdene A 2 · 1 0

Here in Italy milk has always cost more than gasoline. Trading in petroleum products is still cleaner and cheaper than rearing cows, due to the fact that cows eat a lot, produce a lot of - say - gross internal product, and want to be milked at 5 am: this raises the cost of human resources. The situation is soon going to change because: (1) petrol is running out while cows reproduce; (2) most of the gas price is taxes, therefore taxes will increase; (3) research is under way to generate methane from cow emissions, and(4) the milk has so many additives that soon we will have a plastic goo with the milk as an additive.

2016-05-23 09:54:46 · answer #2 · answered by ? 4 · 0 0

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2007-01-08 06:14:09 · answer #3 · answered by Anonymous · 0 0

Actually I noticed at my local supermarket that milk is cheaper. But I did notice that the cheapest gallon of olive oil if almost 10 times that of a gallon of gasoline here in New York ($ 2.55)

2007-01-08 02:08:07 · answer #4 · answered by gregtkt120012002 5 · 1 0

Good question. I don't see a shortage of cows! I went to Walmart and they were charging 3.00 for a gallon of milk. But was able to go to Glenns and get it for 1.99 on sale. I wondered the same thing.

2007-01-08 02:05:32 · answer #5 · answered by teashy 6 · 0 0

its called supply and demand. if you demand to go to walmart and buy it for $3 a gallon rather than shop around, they will happily supply you with it for $3 a gallon.

but realistically speaking, milk commodity prices have been down for quite some time. so it is the retailers yet again determining the price, while paying the producer very little. walmart economics.

2007-01-08 02:07:29 · answer #6 · answered by qncyguy21 6 · 2 0

The rise in the cost of milk is due to the drugs that are now being administered to the cows to make them produce more.

One would think that with the production of milk being higher that the price would be lower but such is not the case.

It is obvious that greed encompasses everything.

2007-01-08 02:05:53 · answer #7 · answered by LadySable 6 · 0 2

Does that mean Bush will be going to war with dairy farmers soon? Gotta stabilise our milk supplies, er, no, I mean give all the cows a chance to live in a democratic state,,,,,

2007-01-08 02:10:22 · answer #8 · answered by baldersj 1 · 1 1

Gasoline does not have to be kept refrigerated or kept clean enough for humans to consume.

2007-01-08 03:18:20 · answer #9 · answered by American citizen and taxpayer 7 · 0 0

The cost of Milk is higher because cow flatulence is the cause of global warming.Its those big business cattle ranchers that are getting subsidies from the evil government.

2007-01-08 02:06:09 · answer #10 · answered by rosierotnass 2 · 1 3

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