Sunday, October 31, 2021

Dairy Farmers as an Interest Group

The phrase "got milk?" is well-known around just about every age group in the United States. Commercials, advertisements, radio announcements, and more all promoted drinking milk for stronger bones for years, and many of us can remember them vividly from our childhood. Further, milk is commonly promoted in school lunchrooms, with the federal government making changes allowing for fattier milks in cafeterias as recently as the Trump Administration. These instances signal the success of the dairy industry's interest groups, but which take on the size of these groups prevails in this instance?

The main distinction is that Olson would argue that the dairy industry must be small, as it would more easily overcome its organizational problems and succeed. On the other hand, Becker would assert that the industry must be large, as this plays a much larger role in his formula for success than Olson's. It turns out that Olson is more correct in this case. In recent history the amount of dairy farms has been steadily decreasing, with the number of dairy operations falling over 55% from 2003 to present. There are currently less than 32,000 left. This means that even with the size of this interest group getting smaller and smaller, their success is still prevalent across the U.S., which Olson would say is because of their smaller organizational costs.

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