BigBallinStalin wrote:Although YOU may not find those to be substitutes, it really doesn't matter what you alone think. You're not the Grand Czar of Substitutes, my friend. The quantity demanded for milk depends on the preferences of the consumers---not just your preferences nor your opportunity cost alone.
Of course I'm not but there needs to be at least some close similarity between the original and the substitute otherwise it's not actually a substitute, right? How about I refill your toothpaste tube with hemorrhoid cream? Close enough?
BigBallinStalin wrote:That's not cheating. That's called Markets, baby.
Translation: Babble Babble.
BigBallinStalin wrote:"Hey, Johnny, we need some milk cows in sector 9Z immediately. The prices here are crazy high!"With that, we lay your qualms to rest.
Yeah in a world of limitless resources where time and science is irrelevant, this would be accurate.
Funkyterrance wrote:BigBallinStalin wrote:"
The bottom line is, once again, that people are too short sighted for a completely free market to work."
BigBallinStalin wrote:if that was true, then we could make the same argument for almost all other economic goods. Therefore, if this is true, we must impose price controls on everything. Prices don't work on the market, but they definitely work with central planning, amirite?
I think it would work with
some markets, just not all. Some items are more resilient and can take some "prodding" by the market but others, like milk, are too fragile and should be protected by central planning. You can mess with chewing gum, cigarettes and cookies all you like because A:they aren't necessities by any stretch, B: there are many, many alternatives available if they get the chop and C: they can be produced relatively quickly in the event that price bounces back.
BigBallinStalin wrote:Sure, cuz the Soviet Union had no shortages! And wartime economies experience no shortages for consumer goods like milk! Amirite?
Anyway, we must insist on free markets for milk--instead of supporting price controls and their inherent inefficiency (waste).
So now I'm a communist?
Seriously though, in my mind it's more of an "ounce of prevention/pound of cure" sort of scenario and doesn't have to apply to all goods, just those that aren't worth the risk.
Another thing to consider here BBS is that skills such as dairy farming are passed down from generation to generation and for the most part, these are the only people who
want to be dairy farmers. So lets say the price of milk plummets and all of these heirloom dairy farmers have to quit and get regular jobs and the market comes back. I actually know quite a few dairy farmers and those types of people are not going to get back into it once they've "quit", so to speak(let down is a better term). We would have a very hard time filling those shoes.