Butter Lines In Norway

[JohnnyRingo]

4. They were trying to protect their dairy farmers though import taxes

The moral of the story is that government subsidies are more effective than isolationism because when domestic production falls, prices skyrocket. Norway had a dairy shortage, but it can happen to any domestic commodity.

I agree that govenment can and should regulate our food prduction. Though many see farm subsidies as a handout to Big Food or unnecessary govt intrusion, the fact is that with properly planned control we can prevent wheat or dairy gluts that drop prices suddenly and drive many small farmers out of business. This is why the govt stepped in and handed out free cheese in the '70s. The end of this "socialist" program in the '80s, along with shady short term farm loans from shark banks, caused Neil Young and Willie Nelson to start giving yearly free concerts.

By the same token, shortages caused by an uncooridnated national food production chain can cause sharp spikes in commodity prices that hurt consumers. Using subsidies to control the peaks and valleys that affect our food supply is like taking a chain saw and levelling out the price to a small ripple. This is especially effective for the remaining mom and pop farms that don't have the deep pockets to weather an ever changing battle of supply and demand.