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Why does America regulate the trade in raisins?
The Economist ^ | April 14, 2013 | The Economist Explains

Posted on 04/15/2013 7:27:33 PM PDT by Tolerance Sucks Rocks

THE Supreme Court has frequently handed down judgments that have shaken America to its core. Now, it has turned its attention to the raisin. A group of farmers has brought a complaint about the Agricultural Marketing Agreement Act of 1937, under which the government confiscates part of the annual national raisin crop. The Court is considering whether the arrangement is constitutional. But why is a country that generally celebrates red-blooded capitalism regulating the raisin trade in the first place?

Since the 1940s a government agency called the Raisin Administrative Committee has confiscated a portion of the annual raisin crop: 47% in 2003 and 30% in 2004, for example. Farmers who fail to surrender their raisins are fined. The committee, which is made up of 47 farmers and packers, plus one member of the public, does not pay farmers for the raisins it expropriates—indeed, it gives many away and sells others for export at low prices. After covering its costs it gives farmers the remaining profits, if there are any.

The stated aim of this bizarre system is to preserve an “orderly” market, by determining how many raisins the domestic market can bear and then getting rid of the rest. It is unclear why raisins need this sort of central planning when the supply and demand of most products are left to market forces. Though the majority of raisin farmers were in favour of the plan when it started 65 years ago, these days many of them are unhappy about having to give away a big chunk of their crop. Nor does the system represent a good deal for consumers: the artificial raisin-scarcity created by the expropriations drives up prices, which means that Californian raisins are sometimes cheaper abroad than they are in California itself.

The raisin is not the only federally regulated fruit. In all, 30 products are bound by such “marketing orders”, which are overseen by the Department of Agriculture. The Court is to rule on the narrow question of whether the government should at least pay for the raisins it snatches, but its decision could open the way to a wider overhaul of the system. The evidence is that unregulated trade in fruits can prosper without the need for federal involvement. Citrus farmers, for instance, recently scrapped a similar system and seem to be coping inside the free market. There seems little reason not to do the same for the raisin.


TOPICS: Business/Economy; Food; Government
KEYWORDS: 1937; agriculture; confiscation; crops; depressionera; farmers; freemarkets; freetrade; insanity; nannystate; quotas; rac; raisins; regulation
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1 posted on 04/15/2013 7:27:33 PM PDT by Tolerance Sucks Rocks
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To: SheLion; Eric Blair 2084; -YYZ-; 31R1O; 383rr; AFreeBird; AGreatPer; Alamo-Girl; Alia; altura; ...

The nannies are everywhere!

Nanny State PING!


2 posted on 04/15/2013 7:28:01 PM PDT by Tolerance Sucks Rocks (Drag Me From Hell!)
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To: Tolerance Sucks Rocks

FDR policy? Commie. He loved Mussolini...


3 posted on 04/15/2013 7:30:10 PM PDT by WriteOn (Truth)
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To: Tolerance Sucks Rocks

1943? Did they confiscate the raisins as part of the war effort? Rationing?


4 posted on 04/15/2013 7:30:25 PM PDT by madison10
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To: Tolerance Sucks Rocks
Look. You can't have people just growing stuff and selling it for whatever price the market will bear. That's... untidy. Best to have some schlub in DC decide what the price is, how much is needed, and what your profits will be. That's the American way.

Do I really need the /s?

/johnny

5 posted on 04/15/2013 7:31:11 PM PDT by JRandomFreeper (Gone Galt)
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To: Tolerance Sucks Rocks

What don’t we regulate trade in?


6 posted on 04/15/2013 7:32:44 PM PDT by mnehring
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To: Tolerance Sucks Rocks

An NRA (National Recovery Act) holdover?

This sounds as idiotic as paying farmers not to farm their land.


7 posted on 04/15/2013 7:33:36 PM PDT by Jack Hydrazine (IÂ’m not a Republican, IÂ’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: Tolerance Sucks Rocks

Agriculture was to Roosevelt, what Health Care is to Obama. Both viewed it as a field where Gov’t control and progressive ideology was absolutely necessary,


8 posted on 04/15/2013 7:33:43 PM PDT by PGR88
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To: Tolerance Sucks Rocks

I heard it through the grapevine...


9 posted on 04/15/2013 7:40:15 PM PDT by Conservative4Ever (I'm going Galt)
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To: Tolerance Sucks Rocks

There’s a new wrinkle in this...


10 posted on 04/15/2013 7:42:13 PM PDT by Sacajaweau
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To: Tolerance Sucks Rocks

Why wouldn’t you regulate raisins?


11 posted on 04/15/2013 7:44:50 PM PDT by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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To: logitech; WXRGina

WTH ping


12 posted on 04/15/2013 7:44:51 PM PDT by logitech (It is time.)
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To: Tolerance Sucks Rocks

No wonder a box of raisins costs so much — the Sun Maid is living high off the grape.


13 posted on 04/15/2013 7:49:37 PM PDT by Uncle Chip
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To: Tolerance Sucks Rocks

Remember.


14 posted on 04/15/2013 7:51:47 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Vermont Lt

Either you regulate the raisins or the raisins regulate you...


15 posted on 04/15/2013 7:57:39 PM PDT by gov_bean_ counter (Romans 1:22 Professing themselves to be wise, they became fools,)
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To: PGR88

This wasn’t something that originated with FDR. I recall, from years ago, a film shown on TV of Hoover citing the cause of the farmers’ woes as “overproduction, overproduction, and overproduction.” The farmers themselves dumped cans of milk in protest of the low prices.


16 posted on 04/15/2013 8:15:55 PM PDT by dr_lew
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To: WriteOn

The Roosevelt and Delano families had longstanding ties to Wall Street, and FDR himself was Wall Street through and through.

You’ll simply have to dig a little to find out about what firms he worked for or sat on the boards of, because the 1920’s section of his biography is all but deleted in most accounts.

Of course, as a new world order minion, like the “powers that be” on Wall Street, he favored statism/communism/socialism/etc., as the political structure front to be implemented where possible (which ensures the dominance of the global elite money folks).


17 posted on 04/15/2013 8:26:02 PM PDT by PieterCasparzen (We have to fix things ourselves)
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To: Tolerance Sucks Rocks

Perhaps (raisin farmer) Victor Davis Hanson should weigh in...


18 posted on 04/15/2013 8:47:07 PM PDT by TChad (Call them Oppressives, not Progressives.)
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To: Tolerance Sucks Rocks

He who controls the raisins controls the universe!

19 posted on 04/15/2013 9:41:43 PM PDT by TigersEye (If babies had guns they wouldn't be aborted)
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To: logitech

We should be raisin hell over this.


20 posted on 04/16/2013 6:49:22 AM PDT by WXRGina (The Founding Fathers would be shooting by now.)
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