Got Milk?

Associated Milk Producers and the Nixon Campaign

“The Associated Milk Producers began giving money to the Nixon campaign, met in the White House with Nixon and the Secretary of Agriculture, gave more money, and the secretary announced that “new analysis” made it necessary to raise milk price supports.” (Zinn)

The 1970’s is truly about the loss of faith and trust in the government and is about the idea of stagflation. This quote taken from Zinn reflects just that. Stagflation is about higher rates of inflation with less available jobs. When it comes to inflation, not just anything is inflated. From an economics standpoint I can see why the Associated Milk Producers gave money to Nixon and I see why Nixon took it. Milk is a product that leans more toward inelasticity because there aren’t really any substitutes. This means that it isn’t price sensitive for customers. Thus they inflate it. As a result “the price increases added $500 million to the profits of dairy farmers (mostly big corporations) at the expense of consumers” (Zinn). This is a perfect example of why there was a lack of trust in the government. The government knows that their aren’t as many jobs which means that not everyone will have money to spend and buy specific products. Yet they inflate prices on inelastic products like milk. Why? Because they act toward their best interests and not in the interest of the people. To make matters worse, this was never brought up in “impeachment charges¬†and never televised in the Senate hearings- possible collusion?¬†Thus, the people had no trust… and no milk…