Gas prices have been going down, nearly 24 cents since this time last year and 29 cents since last month. So NBC had to find another liquid to condemn. Meredith Vieira said on the August 14 “Today” show that “your wallet is getting sucked dry” by milk prices.
She lamented that “The average price for a gallon of milk is at its highest nationwide average ever, it will set you back $3.80.”
Reporter Lee Cowan explained that dairy cows are getting squeezed: “Dairy cows these days are being pushed to the limit, demand for their milk has never been higher, and neither has its price.”
So why’s the price so high? Two words: demand and subsidies. NBC covered one but not the other.
Cowan explained that demand for milk is increasing and dairy cows can’t keep up. The rise in demand comes from China and India’s new dairy obsession.
China and India like gasoline, too, and energy demand is also affecting milk prices – because of the rise in corn-based ethanol.
“Alternative fuels like ethanol have made corn a more pricey commodity, and corn is a cow favorite,” Cowan said.
Of course, the huge new demand for corn didn’t just happen. Corn has been getting billions of dollars in subsidies from the U.S. government that have driven demand up.
The MSM always finds a way to accuse oil companies of “sucking our wallets dry,” but with gas prices down, they are attacking ethanol – an energy source they originally praised.