Oxford College Principles of Microeconomics Course Planet Money: Big Government Cheese
Aug 27, 2025
Dive into the cheesy saga of government intervention in the milk market during the 1970s. Discover how a noble intent to support dairy farmers led to a mountain of surplus cheese that required cave storage! Explore the humorous and absurd tales of 'Government Cheese,' which became a pop culture icon, featuring unexpected appearances in comedy and cooking. With behind-the-scenes insights on cheese grading and the quirks of cheese storage, this captivating discussion reveals the surprising impact of agricultural policies on everyday life.
AI Snips
Chapters
Transcript
Episode notes
Price Controls Trigger Ripple Effects
- Raising milk price via policy can trigger complex market reactions beyond intent.
- Price controls create ripple effects throughout supply chains that are hard to predict.
Two Ways To Raise Farm Prices
- To raise farm prices, change demand or restrict supply.
- The government chose demand by committing to buy dairy products to prop up milk prices.
Government Opens A Giant Cheese Shop
- The USDA offered to buy unlimited cheese, butter, and nonfat dry milk at set prices.
- They used cheese purchases as a proxy to push up raw milk prices.