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In the argument above, the arguer advocates that the Bataviagovernment ought to regulate the price of milk to guarantee fair retail prices.The evidence cited is that the number of dairy farms in the nation hasincreased 25 percent in the past ten years yet the price of milk at the localmarket doubled in the same period, based on which the arguer suggests that thefarmers in Batavia are making excessive profits. In further support of this conclusion, thearguer implies that government intervention can protect the customers’interests. At first glance, the rationales seem plausible, yet a furtherexamination disposes the argument toward invalidity. One of the most fundamental problems relies on theassumption that the price of milk in the local Excello Food Market representsthe Batavia’s market. The arguer fails to account for the possibility thatExcello Food Market is an organic food store, so the prices in it are muchhigher than the average prices in Batavia. In the mean time, probably only asmall percent of customers buy diary production in Excello Food Market, thelocal government does not need to regulate the prices of milk for the reasonthat the price there is not representative of the local price. To bolster thearguer’s suggestion, he/she is advised to provide detail evidence that ExcelloFood Market’s price reflects the local price. Another problem is that the arguer unfairly assumes that theprices of milk should decrease with the increasing supply of milk. Yet thismight not be the case for a variety of possibilities. It is entirely possiblethat the economy of the country is in recession, and the inflation is highduring the past ten years; as a result, the price level rises a lot. Then theprice of milk also increased due to the inflation but not the farmers’ avarice. Without any evidence about the nationaleconomy especially the inflation rate, the arguer cannot convince me that thediary farmers are making excessive profits. If the increasing price is theoutgrowth of the poor economy, albeit the regulation of local government mighthelp the customers enjoy a lower price of milk, it will hurt the farmers’interests severely. Granted that the increasing supply of milk has led theretail price of milk to go down nationwide, it does not necessarily ensure thatthe Batavia’s price decreases as well. Perhaps the number of diary farms inBatavia declines in contrast of the national circumstance, or the production ofmilk decreases for some natural disaster happened in Batavia. Hence because ofless supply, the price in Batavia goes up. Without accounting suchpossibilities, the author’s recommendation is untenable. To undergird his/herconclusion, the arguer is encouraged to answer the question that whether thenational circumstance can apply equally to the local market. To further evaluate the author’s recommendation, besides theconcerns mentioned above, whether the government ‘s direct intervention isdesirable remains debated. There are many strategies the local government canadopt to ensure a lower retail price of milk without hurting the farmers, say,reduce the sale taxes, or provide the farmers subsidies. Before the governmenttakes any action, they should evaluate this recommendation more meticulously. |
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