Blame-shifting to Middlemen

Now Biden-Harris is throwing a billion dollars at the food supply chain problem, even as he’s blaming food supply chain middlemen for his supply problems.

This is just more blame-shifting by Biden-Harris.

Middlemen can, indeed, price gouge. So can end-sellers. So can original producers. However, in the vast main, middlemen drive prices lower: they insulate original producers from end sellers, giving those producers more flexibility in to whom to sell, the middlemen more choices to whom to sell, and they give end sellers more choices of from whom to buy. Competition among middlemen and on both sides of the middlemen drive prices down.

And never mind the risks taken by middlemen. They don’t broker deals between original producers and final buyers; they buy from those producers, own the product, and subsequently must find buyers to whom to sell. Even if middlemen think they’ve lined up their buyers prior to purchasing from producers, many of those deals are only potential and can fall through, or the agreed future price can prove to be wildly inadequate in the realization of delivery.

Biden-Harris actually claimed with a straight face, through his unsigned “fact sheet,” that

[m]ost farmers now have little or no choice of buyer for their product and little leverage to negotiate, causing their share of every dollar spent on food to decline.

Maybe yes, maybe no. But a farmer has far more choice than if there were no middlemen to take the risk of a bumper crop driving down the price he can get on sale after harvest, or of a poor crop driving up the price he could have gotten had the crop done poorly before he committed to sell.

Biden-Harris, aside from the dishonesty of their blame-shifting, in the particular case of farm production is pretending to be ignorant of the time lags involved from crop planting to final crop delivered to the end user, and of the time lags involved from crop planting to final delivery to the livestock rancher to the end user.

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