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Old 05-13-2007, 09:09 PM
ConstantineX ConstantineX is offline
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Join Date: May 2006
Location: Like PETA, ride for my animals
Posts: 658
Default Re: The most amazing thing happened yesterday

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So the government succeeded in making the hamburger more expensive then it had to be?

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No, the government probably helped in getting the whole thing to happen.

Take the wheat for the bun, for example.

A while back farmers would cry "free market!" at the drop of a hat. Of course, when the government moved to drop price supports, stop buying surplus to stockpile, etc. they shut up real fast. Without government regulation, you would see the old drought, flood, wiping out farmers and then farmers boom and bust, too many bumper crops and the supply exceeds demand, etc. The government helps keep a consistent market, instead of feast or famine that you used to see in the old days.

Most wheat is traded in Kansas City. There a regulated exchange oversees the trading, so somebody can't corner the market, create artificial shortages, etc. Without a well regulated exchange, you would probably see the old Boom and Bust, shortage/glut, that you used to see with old commidities way back when.

Today transportation of the wheat is usually done by railroad. These railroads were granted land by the government for their tracks, and benefit from many government regulations to keep them running cheaply. Back in the old days, people pretty much used what was grown locally, there were not nationwide transportation networks to get things to market. You ate what food was available when it was in season.

You might study some history, particularly the Old West, where the farmers today were granted the land from the government when the Kansas Territories where opened up, and how the railroads where able to link both coasts with government help.

You might study some of the old trading scams that were pulled with wheat, cotton, sugar, etc. That government regulations stopped the old boom/bust cycles that were pretty frequent back in the 1800s.

You might visit some third world, or not so third world countries, and see how that "free market" provides a very chaotic labor pool, and the "buyer beware" philosophy of eating in a resturant in the first place.

It is really simple minded to chant "GOVERNMENT IS BAD".
Especially after you have taken advantage of all the infrastructure that the government has put into place (roads, railroads, markets, even a police force so you aren't killed on your way to work, etc.) Have a legal system so transactions can be conducted efficently (so buying a hamburger isn't like a cocaine deal which requires guns on both parties part, etc.)

Yeah, take advantage of all that, kick back, and proclaim "government is bad".


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Do you know what futures are? If you don't, you have no business discussing this topic.
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