A dairy scandal in Canada—dubbed Buttergate—holds crucial economic lessons for the U.S. as well as for our northern neighbor. This episode of What’s Ahead discusses how Buttergate highlights the idiocy of both tariffs and highly intrusive government regulations.
Demand for butter soared during the pandemic lockdowns, as Canadians had more time for baking. In a normal market dairy farmers would have beefed up their herds to produce more milk.
But Canada rigidly regulates the production and pricing of milk, eggs and poultry. The upshot: Dairy farmers were not allowed to expand their herds. Moreover, because of tariffs and other trade barriers, Canada couldn’t import more dairy products from the U.S.
So Canadian farmers resorted to getting more milk from their cows by feeding them more palm oil product. Milk production went up—but the texture of the butter went down.
Lumber is another example of government brainlessness. At a time when U.S. prices of wood and wood products have risen meteorically, the Biden Administration wants to double tariffs on Canadian imports.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.
