Tuesday, December 13, 2011

Life Without Butter? Is It Worth It?

Those poor poor Norwegian people, suffering from a harsh and rainy summer that has left their butter producers with a severe shortfall.  Butter is so scarce, supply is so low, that the price of butter has risen to over $500/lb where it can be had at all.  Meanwhile, next door in Sweden, who suffered the same weather conditions and the same domestic shortfall of butter production has enough butter to meet their demand at acceptable price levels. 

The difference is in who is being protected.  In Sweden, the consumers of the nation, ie, the citizenry, is protected by allowing butter to be freely imported.

In Norway, laws have long favored domestic dairy production at the direct expense of the citizens of that country.  Imports of dairy are taxed so greatly that foreign producers avoid the market altogether. 

Could you ask for a clearer example of a free market and free trade vs government sponsored corporatism and the effect this has on the population? 

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