Re: Benevolent govt raises price of milk
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Of course milk would be cheaper.
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Are you sure it would be cheaper in the long run? I don't know the dairy market well enough to comment, but their are certainly industries where government subsidies/regulations/price controls serve to stabilize markets and encourage capital investment that leads to lower prices. Even in established markets they can lead to lower prices in the long term when the emergence of dominant players and the possibility of predatory pricing practices threaten smaller producers that still represent a substantial portion of the overall market.
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