Summary of "Big Government Cheese | Planet Money | NPR"
Big Government Cheese: NPR’s Planet Money Exploration
The video “Big Government Cheese” from NPR’s Planet Money examines a distinctive government intervention in the dairy industry that began in the 1970s under President Jimmy Carter. Carter aimed to support farmers and ensure national food security by implementing a policy to raise milk prices automatically every six months.
Government Strategy to Support Dairy Farmers
To increase milk prices without limiting production quotas, the government chose to boost demand by purchasing dairy products—primarily cheese—directly from producers. This approach created a guaranteed price floor for milk, with the government agreeing to buy unlimited quantities of cheese, butter, and nonfat dry milk at set prices.
Quality Control and Surplus Challenges
To maintain quality, government cheese graders such as Bob Aschebrock rigorously tested the cheese to meet USDA standards. Despite these efforts, the program resulted in massive stockpiles of cheese, filling warehouses nationwide and even enormous temperature-controlled caves in Kansas.
The Surplus and Its Aftermath
At one point, the government was buying one-quarter of all cheddar cheese produced. The surplus cheese began to spoil, prompting subsequent administrations—including Ronald Reagan’s—to find ways to offload it without disrupting the market. The solution involved reprocessing the cheese and distributing it through food banks, giving rise to the cultural phenomenon known as “government cheese.” This cheese became a staple in welfare programs and a symbol of government overreach.
Lessons on Market Intervention
The video highlights the difficulties of price controls and artificially created demand. Eventually, the government had to pay farmers to reduce milk production and launch campaigns like “Got Milk?” to foster genuine consumer demand. This episode serves as a cautionary tale about how a well-intentioned policy to support farmers spiraled into a costly and unwieldy government cheese surplus.
Presenters and Contributors
- Steve Inskeep – News reporter
- Ron Elving – News reporter
- Bob Aschebrock – USDA cheese grader
Category
News and Commentary
