Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/3/84; site talcott.UUCP Path: utzoo!watmath!clyde!burl!ulysses!allegra!bellcore!decvax!genrad!mit-eddie!godot!harvard!talcott!gjk From: gjk@talcott.UUCP (Greg Kuperberg) Newsgroups: net.politics Subject: Re: food for thought Message-ID: <310@talcott.UUCP> Date: Sat, 2-Mar-85 10:51:57 EST Article-I.D.: talcott.310 Posted: Sat Mar 2 10:51:57 1985 Date-Received: Tue, 5-Mar-85 02:26:41 EST References: <812@oliven.UUCP> Organization: Harvard Lines: 34 >It should be obvious that the American system combining many farmers >with government technical assistance and price supports has been the most >productive in the world. The Agricultural Adjustment Act was passed in 1933 >to provide stability to the agricultural market which tends to suffer >from the "cobweb effect" in which prices oscillate wildly due to a >relatively inelastic demand, and an uncertain supply. >Unfortunately the Reagan administration is about to dismantle this system >and pave the way for large corporations to exercise the same control over >farming that they now exercise over other industries. >The ultimate effects will be the same as other industries- a few oligopolies >will control the market, increase prices and restrict supply. >Once again, the free market leads to its own dissolution..... >But do not forget the role of government policy in making American >agriculture the most productive in the world! > tim sevener whuxl!orb I'm confused...Which companies comprised your "oligopoly" before the Adjustment Act? And I don't know about this inevitable trend of the free market. Where is this trend in the software industry? The airline industry (since its deregulation)? Even when there are not so many companies involved, I don't see how you can say there is little competition; Coke and Pepsi seem to be in heavy competition to me! I don't know about your restricted supply either; the supply of cars, for example, doesn't seem restricted in the slightest. And how could the auto companies be an oligopoly when one of them was about to go bankrupt? Finally, which government policy are you referring to in your last sentence? Price fixing? Paying the farmers not to grow food? The monopoly on, for example, the hops market? I think that John Deere had more of a role in increasing productivity than did Uncle Sam. --- Greg Kuperberg harvard!talcott!gjk "2*x^5-10*x+5=0 is not solvable by radicals." -Evariste Galois.