And as a result, we run a permanent, wasteful surplus of milk that the market doesn't want. If producers tried to charge $6 a gallon for milk, the market equilbrium wouldn't permit it. At $6 a gallon, we would run a temporary surplus until producers dropped the price to the point that supply met demand, achieving equilibrium again. The surplus would be temporary. Instead we have subsidies and price floors which keep production demand artificially high. We pay farmers to produce milk they can't sell so we run a permanent surplus. It's insanely wasteful.
