Tuesday, June 09, 2009

Foodies Will Win Gradually

They'll win on at least some issues, such as some animal welfare concerns, as shown by this Brownfield note saying the American Veal Association is moving away from individual pens to "group housing" (though they have to deal with "bullies"). The bottom line is that, because farmers get a small share of the price of food at the margin, pressure groups who are able to legislate higher standards will be able to enforce their will. Consumers won't notice the additional price. (It's the same economic logic as farmers have been using for years.)

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