Reply #13: It's the same as the "government cheese" of the 50s-60s. [View All]

[Hannah Bell]

Capitalist production usually, for various reasons, produces more goods than can be sold at prevailing prices.

Theoretically, producers, in competing with each other, should lower their prices to move the goods, forcing weaker producers out. But in situations of oligopoly, they don't. They keep prices up, & dump the unsold goods - or for generous tax write-offs, donate them to "charity," where they can be used without driving prices down.

This is a new variation on the old scam - getting well-intentioned people to buy the unsold goods "for charity" at lower prices (so as not to drive down prices on the consumer market) in addition to the government-sponsored tax write-offs.

Someone's making money on the deal.