What happened when the capitalists poured out the milk?

Economic crisis. As a result, the market is depressed, incomes are declining, and people's consumption is downgrading, because the demand for milk in the market has dropped dramatically, for example, 10 million bottles a day have now become 1 million bottles.

The excess milk cannot be sold and has to be poured out.

The official website shall prevail.

The economic crisis broke out, prices remained high, and the ordinary people could not afford the milk produced by the capitalists, and they were unwilling to sell it to ordinary people at a lower price, so they could only pour the milk into the river.

Because milk cannot be sold during the epidemic, hundreds or thousands of tons of milk have to be poured out every day, which makes people feel that it is a pity.

Milk has a cost, but the milk that is about to expire or has expired can actually be drunk, but it is not easy to sell on the market, unless the price is reduced, but if you do this in large quantities for a long time, consumers will buy your kind of cheap expiring milk, and the normal date is even more difficult to sell, and the capitalists are also to ensure that their milk ** will not fall too much, will rather pour it out, will not be reduced in the market circulation**.

For the development of the entire industry, the price is reduced, the cost has not changed, the profit is less, in order to stabilize the **, it is better to pour than reduce the price.

I believe that many people at that time the capitalists poured milk incident, and some people were very confused, thinking that it was too wasteful to pour milk directly into the river, it was better to sell it to the poor at a lower price, and it could earn back some money, and it would be all gone, in fact, this is too one-sided, most of what they do is based on maximizing profits, therefore, they would rather pour milk into the river than sell it to the poor, but also to reduce costs and increase income.

1. Reduce costs

The cost of any kind of commodity, in addition to the cost of raw materials, also has transportation costs, inventory costs, sales costs, management costs, etc., that is to say, if you do not pour out this batch of milk, you still need to store and transport, and at the same time need manpower and material resources to sell this batch of milk, in this way, it may outweigh the losses, in order to reduce the cost of inventory costs, transportation costs and labor costs and other related costs of these goods, therefore, take a decisive dumping strategy.

2. Increase revenue

When a lot of commodities enter the market, they will follow the laws of the market, when there is an oversupply, the price of the commodity will be reduced, and when the supply is in short supply, the price of the commodity will be raised, and the milk can not be sold at that time, it is obviously a situation of oversupply, then, pour out a large amount of milk, so that the supply and demand of milk reach a balance, and even when the supply exceeds demand, the milk will not fall but rise, then, the profits of the capitalists can be well guaranteed, and if the price is rashly reduced, the market at that time will be disrupted. Many people will not buy normal** milk, and they will buy it in a hurry when you can't sell it and reduce the price, so that not only the profit cannot be guaranteed, but it will be even more loss.

Therefore, at that time, the capitalists were able to maximize their profits by pouring milk into the river than selling it to the poor at a reduced price, so they took such measures, although they seemed incredible on the surface, but once they knew that what they were doing was for profit, it was understandable.

I think most people who see this topic and think of the 1929-1933 economic crisis in the United States that are described in history books. When I saw this sentence back then, the author also denounced the evil capitalism in my heart, which is really too bad, why not give it to the poor for free, look at them so pitiful. However, when your vision is not limited to the simple descriptions in history textbooks, you get more real information, understand the social situation in the context of that era, and think more from the perspective of dialectical thinking, I believe that you will never simply criticize, but think deeply.

First of all, we analyzed from the technical conditions at that time, there was only pasteurization, but there was no aseptic packaging technology, milk can be stored in a low temperature environment for up to seven days, and the production of milk is in the rural farms far away from the city, and needs to be transported to the city to sell, but most of the residents in the city have no ability to buy milk, at this time, the direct consequence of giving away or even selling at a low price is that these farmers have to lose money once they put into production, so I believe that no one will do such a business. Then the milk that has been produced can neither be sold nor stored, and the best way at this time is to dispose of it directly, and at this time, because of the economic depression and the market is shrinking, there will be a large amount of overcapacity, so raising so livestock will inevitably bring more production capacity and costs, and it can only be killed directly. Therefore, pouring milk has nothing to do with the evil capitalism, but only the conditions of the time.

Secondly, from the analysis of the group of people who poured milk at that time, the milk industry in the United States at that time had already appeared in the classification and pricing of milk, and the high-quality milk source** was protected in the form of contracts, while the poor quality milk factory owners did not have a fixed purchase**, which led to this group of people becoming the direct victims of the Great Depression, and these people were also the main force of pouring milk. So these dairy farmers plan to seek bargaining power on their own, and obtain a suitable ** through union negotiations. But before the two sides have negotiated, if someone lowers the price of milk, it will destroy the interests of the dairy farmer group.

In order to protect the milk ** and ensure their own interests, a large amount of milk was dumped into the river.

That's why the capitalists prefer to dump milk into the river rather than sell it to the poor at a reduced price. I think that if we were in that environment, we might not have a better choice. It has nothing to do with morality, it is due to conditional interests.

It's much more pleasing to the eye than pouring Moutai into the toilet.