I just read in the Press Herald (April 15) that the U.S. Department of Agriculture will spend $13 million to buy wild blueberries. By the way, where is the $13 million coming from? According to the article, the purpose of this project is to “stabilize (blueberry) prices.”
Apparently, there is a blueberry surplus and prices have fallen. There was another article a couple of weeks ago (March 25) that stated that a major Maine-based blueberry grower was expanding its production in Canada.
It seems that this is a simple example of one of the basic rules of economics involving the laws of supply and demand. If the supply increases and demand remains the same, prices will fall. Has anyone considered telling the blueberry growers to reduce production? With less supply, prices will then magically stabilize – all with no federal government involvement and no $13 million expenditure.
However, the government solution is to have the taxpayers spend $13 million, plus the cost of transporting and distributing these blueberries, and then pay higher prices for any blueberries they might buy. Thus, the poor unwitting taxpayer gets hit at both ends of the cycle.
Of course, our politicians really love this because it is “free” government money and it makes them look good. And all this while no one is even discussing reducing the supply of blueberries.
As a follow-up, what happens if the “surplus” increases the following year?
Allan Brockman
Buxton
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