For those of you who still think that evil corporations need to be restrained from price gouging and profiteering by government regulation, that bottle of milk in your refrigerator shows that exactly the opposite is true: government regulation enables evil corporations to price gouge and profiteer.
Last April I brought you the story of Hein Hettinga, a dairy farmer in Arizona who went up against Big Dairy, offering milk at 20 cents per gallon less than his competition, because he was exempt from the socialist milk marketing system established in the U.S. in 1937.
Big Dairy, to wit: Dean Foods and the Dairy Farmers of America, paid off some politicians, including incoming Senate majority leader Harry Reid (D-Nev.) and Rep. Devin Nunez (R-Calif.), to have a law passed to require Hettinga’s Sarah Farms to participate in the collectivist scheme. He now has to pay his competitors a “crippling” $400,000 a year to stay in business.
In a House floor speech, Nunez said that having Hettinga compete fairly was “not free market capitalism” and that screwing him over by forcing him into the socialist milk marketing scheme would “restore free market principles.”
And milk prices all across Arizona and California have gone back up, with the profits going to Big Dairy.
Now it seems theWashington Post has finally noticed the plight of Hettinga and others like him who just wanted to offer a product at a fair price, and like the rest of us, were screwed by socialism. ThePost fills in a little background:
For Costco shoppers, it was a good deal, according to an e-mail sent last year to Reid’s office by Joel Benoliel, Costco Wholesale Corp.’s senior vice president. The arrangement lowered the average price of milk “by 20 cents a gallon overnight and it stayed that way for three years,” Benoliel wrote in the e-mail, made available to The Washington Post. “Milk suppliers in southern California were gouging the public on price (20 cents a gallon higher than N. California) for years and were unresponsive to our call for lower prices. It was a brazen case of price gouging and profiteering by the strongest, largest market suppliers simply because they could.”
In Arizona, Hettinga was competing for retail sales against Arizona’s biggest milk company, Shamrock Foods Co. of Phoenix. He “wasn’t by any stretch a more cost-effective operator than we are. He just didn’t have the same rules apply,” said Shamrock’s general manager, Michael A. Krueger.
United Dairymen of Arizona, a cooperative that handles 85 percent of the state’s milk, complained that by keeping his milk outside the Arizona pool, Hettinga was affecting the USDA price-setting formula, lowering returns for other dairies.
In California, the Hettingas were taking on the two biggest players in the U.S. milk industry: Dean Foods Co., the largest processor of dairy products, with $10 billion in annual sales and five California plants, and Dairy Farmers of America, a co-op that controls nearly a third of the nation’s liquid milk.
In Southern California, the co-op sells to Dean Foods, which in turn sells to retailers. As Hettinga’s milk began reaching Costco stores, there was a snowball effect as other milk suppliers were forced to lower their prices, Costco’s Benoliel said. — Washington Post
So, of course, the representatives of Big Dairy complained — loudly — and started funneling millions of dollars to Congress in order to either force Hettinga into the collective, or force him out of business.
Because, of course, we can’t allow anybody to come in and offer the same product at lower prices. It might reduce big corporate profits and improve people’s standard of living. That’s why we need socialism: to keep big corporations big, and keep the little guy down.
Hettinga has filed a federal lawsuit, alleging that the so-called Milk Regulatory Equity Act of 2005 is unconstitutional.
“I still think this is a great country,” Hettinga told thePost. “In Mexico, they would have just shot me.”
Q
Dec 12, 2006
the problem, is we look at everything as if it were black and white like a chess board, the reality is our chess board of life has a lot of blended white and black—grey areas where it’s not about good and evil, simply what works and what doesn’t.
C4ISTAR
Dec 13, 2006
Well, I don’t see how forcing a milk supplier to be non-competitive works…
Hell, we have a oil cartel (OPEC), and now a milk cartel? All this story is missing is a Jack Abramov and a Tom Delay…
Alan Garcia
Dec 13, 2006
I think USA is socialist country like hi say keep the big guy up and keep the avrege guy(us) low, and I`m mexican and yeah they will shot Hettinga,but besides all this problem just show that this is not a capitalist country because the goverment don`t let you compite in the way you want, and thats the base of capitalism “free market”
Dec 15, 2006
Kopfjager/Lemonshrew
Dec 21, 2006
Two years of Homeland Stupidity - Homeland Stupidity
Peter Wilson
Dec 23, 2006
I’m a little behind the curve on this one, but branding the policy “socialism” does little to illuminate the core problem here–rather, it just keeps reminding the reader, somewhat arbitrarily, and out-of-context, that the writer is rabidly anti-socialist. The article would read much better if it stuck to the core points attempting to be made, rather than incessantly employing the label “socialist” as though it shed light on the issue. The philosophy of your endeavor can be well conveyed through the writing of clear and concise articles, rather than those that rely on the invocation of some dreaded “ism” every other sentence.
Fest3er
Dec 29, 2006
Actually, I think ‘fascist’ would have been a better term than ’socialist’, since fascism generally implies government control of private property, and the US Government’s control of milk prices is very much like fascism. If dairy farmers get $1/gal, they’re lucky. And who’s getting the other $2/gal?