The United States of Cartels | Hoover Institution

What is overlooked in the constant refrain of stabilization and participation is, of course, the negative effects that these arrangements have had and continue to have on consumers: They must pay more because government backing eliminates the destabilization of cartels that would allow prices to return to their competitive level. Once prices are stabilized for the exclusive benefit of farmers, the inherent risk of variable agricultural prices (often controlled by the weather) is not magically removed. Rather, it is transferred by government fiat to the rest of society that bears the burden either in the form of higher taxes or higher prices. But Justice O’Connor concludes that consumers have no right to challenge the orders issued pursuant to the 1937 act, lest they bust up the cozy arrangement. The New Dealers knew how to put cartels together.

via The United States of Cartels | Hoover Institution.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.