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What is the economic principle behind the famous historical scene of "pouring milk"?
Economic principle: Overcapacity will only reduce the price of products. In order to keep the price high, we must get rid of the surplus products. 2 1 century, some countries will have milk pouring incidents, which is really incredible. The last time this happened was during the economic crisis. Unexpectedly, this epidemic led to an increase in unemployment and a decline in people's purchasing power, while businesses actually reproduced the solution to overcapacity in the last century. People have to spurn the capitalist's idea of upward interests and mercenary.

Ironically, those who pour milk in famous historical scenes are the merchants who produce milk. While emphasizing performance, they tried their best to produce milk, while pouring out all the milk they produced. Some people will ask:? Why do those businesses do such things? Don't they feel bad? ? Outsiders look distressed, how can businesses not feel distressed? However, in order to maintain the price of milk and make greater profits, those merchants prefer to waste milk. Obviously, these capitalist countries pursue market economy, but capitalists pursue capital. It is not necessarily beneficial for them to adjust prices only by the market.

Under the market economy, the price of commodities is determined by the relationship between supply and demand, that is, the price of commodities supplied is directly proportional to the quantity people need. This epidemic, the unemployment rate has risen, and more people can't buy milk. The amount of milk they can buy has decreased, but the milk supply is certain. If dairy products continue to flow into the market, the price of milk will drop because of the surplus, which will allow consumers to buy cheaper milk. However, for merchants, the decline in milk prices will bring greater losses, so they choose to dump excess milk to maintain milk prices.

Generally speaking, pouring milk is to reduce the supply of milk and maintain the market price of milk, which is actually a means for capitalists to adjust the market price themselves.