Milk: Subsidizing Slaughter

Ezra Klein’s got a simply fantastic post all about dairy industry subsidies. It’s widely known that dairy subsidies involve a convoluted price-fixing system that ends up robbing taxpayer and milk drinker alike. What isn’t widely understood is that government intervention actually exacerbates the dairy industry’s boom and bust cycle. Klein shows how price supports encourage dairies to expand their herds when times are good, creating huge numbers of cows to get rid of (read: slaughter), when milk prices inevitably fall. (Thanks, Matt.) Link.