HERB MITTELSTEDT: BREAKING THE LAW OF SUPPLY AND DEMAND
The law of supply and demand has been an integral part of our economic system, capitalism, for hundreds of years. Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity.(Wikipedia)
A modification of this law is being implemented by government, because of their superior intellect, desire to control and create a class of producers and consumers dependent on their benevolence and, of course votes.
The law now seems to read, we demand you use a product, and we will see to the supply of it. We may have to subsidize it, mandate it, provide credit and financing, give tax breaks, and sponsor research, to make the wisdom of the mandate clear to the consumer.
Such seems to be the case with ethanol. Efforts are being made to raise the allowable levels in fuels from 10 to 15%. Read between the lines, and you can see a 15% mandate in your future.
The technique is proven; it increases agricultural income by creating new markets and demand for corn. Why not expand on the concept? Before the 10% allowance (a mandate in many states) I assume consumers were using all the ethanol they were willing to purchase.
Now, let's increase agricultural income across the board. How? Mandate we consume 10% more of the following products: beef, pork, chicken, lamb, wheat, barley (beer you know), flax, field peas, soybeans, chickpeas, dry edible beans, oat, turkey, rye, spelt, canola, rape, lentil, mustard, corn, sugar beet, potato, duck, pheasant, quail, pond raised fish, carrots, onions, radish, cabbage, squash, pumpkin, peas, green beans, yellow beans, broccoli, tomato, asparagus, grape(wine of course), honey, milk, cheese, butter, yogurts plus an endless list of other specialty crops and products produced right here in North Dakota as well as nationally.
The fact that consumers may be using all of these products they want is not an issue. We need to look at the greater good, the economy. Why it is obvious! We can mandate and spend ourselves to a greater prosperity. Let's also mandate a doubling of our exports of these products! Didn’t someone think of that already? Oh well!
How to enforce such a mandate? Why, we would need a czar for each of the products. They would check and verify individual consumption as well as set a fair market price for each commodity. These are not one man jobs, so when fully staffed, we would have full employment! SEIU (service employees international union), could recruit them, bringing this new work force and voter block, into the fold. This seems appropriate, their membership is now over 50% government employees.
The USSR, tried this, so we know success lies just beyond the next crisis. Never, never waste a crisis!! Seems odd though, the Russians and Chinese are embracing capitalism and lower taxes as a way of generating real economic growth. Why are we embracing a failed system big time? Go figure.
Another plus, with everyone consuming more, health issues will increase. No problem, we will have Obama Care in place. Health rationing will thin the ranks, providing a rapidly growing list of clientele for the funeral industry. Here we can, mandate and subsidize 'green last rites', controlling carbon emissions, a true cap and trade opportunity, you know! Did I mention funeral czar and staff?
Where to start? A blue ribbon committee composed of progressives is the logical choice.