Want a glimpse of what happens to businesses reliant on government regulation to stay viable? Take a look at California, where cheese makers benefit from a state law governing the price they pay for milk.
The price has been so low that many dairies are now going out of business — an estimated 100 out of roughly 1,600 this year. Dairy owners obviously favor raising the price. Cheese makers argue a milk price increase could drive them out of business given the high cost of operating in California due to its other excessive regulations.
To offset the impact of overreaching government regulations, cheese makers are forced to promote … other overreaching government regulations. Instead of competing through the marketplace and letting consumers ultimately determine price, California’s dairies and cheese makers must compete in lobbying state lawmakers.
That’s no way to run an economy.