Oil and Milk

Graham_Devon

Today, MPs have urged that action is taken on milk prices. Outside of the general problem of there being an oversupply of milk, they specifically cite problems with supermarkets competing fierecly on prices. They also suggest that they should be able to fine supermarkets over disputes.

A couple of weeks ago we had the oil issue, and MPs wanting a package of measures aimed at keeping people in jobs in Aberdeen as the oil price falls.

So, where does the free market fit into all of this? Should the government be intervening to keep prices higher than they otherwise would be? Or should we accept the harsh truth that we are living in a global environment (and this is something we support in the UK) and that prices fluctuate and competition sometimes brings prices down?

Or should certain areas of the economy be protected? Such as mlk and oil? If so, who makes the call on who gets help and who gets left to go bankrupt?

http://www.bbc.co.uk/news/uk-politics-30882208

[Deleted User]

In the case of some essentials RPM wouldn't be the worst idea ever

carslet

Government should take no action, if farmers or oil companies go bust then so be it.

Graham_Devon

woodbine wrote: »

In the case of some essentials RPM wouldn't be the worst idea ever

Maybe, and that might work inside the UK. However, it could make us very uncompetitive outside of UK shores.

I kind of get the feeling we want the best of both worlds. Freedom when things are going well and we are prospering, but taxpayer subsidies and controls when things go sour.

Can we have both? And if so, how does the taxpayer benefit from it? Maybe if some of the profits from the good times were put into a fund to cover the bad times it wouldn't be so bad. But that never seems to happen...worse, troubled companies appear to get asset stripped before being dumped on the taxpayers doorstep.

ukcarper

carslet wrote: »

Government should take no action, if farmers or oil companies go bust then so be it.

I would personally happily pay more for milk if it kept UK milk production going.

CLAPTON

ukcarper wrote: »

I would personally happily pay more for milk if it kept UK milk production going.

do you have (expensive) milk delivered to your door or buy supermarket stuff?

wymondham

carslet wrote: »

Government should take no action, if farmers or oil companies go bust then so be it.

How True. The new way of thinking though is intervention can avoid hardship, even though it usually just delays it slightly (at great cost!)

wymondham

CLAPTON wrote: »

do you have (expensive) milk delivered to your door or buy supermarket stuff?

that's going back a bit isn't it! There is still a delivery I see round here, but he shows up at the crack of dawn - 3pm!

triplem_uk

This is crazy. I thought we lived in a free market. If a farmer is selling milk to supermarkets at a loss then it's their own fault. Any business needs to make a profit. It's the race to the bottom on so many things which ruins in the long run.

ukcarper

CLAPTON wrote: »

do you have (expensive) milk delivered to your door or buy supermarket stuff?

I buy it in supermarket as I have no choice.

ukcarper

triplem_uk wrote: »

This is crazy. I thought we lived in a free market. If a farmer is selling milk to supermarkets at a loss then it's their own fault. Any business needs to make a profit. It's the race to the bottom on so many things which ruins in the long run.

That's ok if you are happy to import all our milk.