Friday, December 28, 2012

Milk to Skyrocket, Oil Not So Much

Is it not a symbol of how twisted our priorities have become that the wildly successful Oil and Gas industry had no problem getting its usual energy subsidies continued in a bill that passed the House and Senate last March, so the price of gasoline at the pump can remain below 4 or 5 dollars per gallon, but tonight we are not so certain that the vastly less costly federal subsidy on milk prices is now in jeopardy and are slated to expire, along with everything else, on January 1st.
Amazing to some, par for the course for others.
Subsidies to the oil industry an industry that needs anything but federal subsidies in an era where they get over 100 dollars per barrel of crude, to the tune of billions, keeps gasoline cheap in this country.
But subsidies to the dairy industry, one that counts its pennies and gets affected by drought and disease are not going to survive into the new year. This is going to bring the price of a gallon of milk to the range of 8 dollars per gallon. Twice that of a gallon of gasoline.
And that, like gasoline, is only one end of a long line of dominoes, including but not restricted to, the price of butter, cheese, bread, cereal – just about every baked good.
The oil industry is swimming in cash and so Barack Obama has called for an end to the oil and gas subsidies. The dairy industry not so much but any effort by the Obama Administration to move a dairy subsidy along falls on deaf ears.
Oil gets billions and dairy gets the shaft.
And that is how your congress, courtesy of the TEA Party, rolls.

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