NORWAY’S CHRISTMAS BUTTER SHORTAGE.

NORWAY’S CHRISTMAS BUTTER SHORTAGE. Norway has a butter shortage which has created quite a stir on the internet. This NPR article reports: “No krumkaker. No Berlinerkranser. No sandbakkel.” This Guardian article quotes a Norwegian as saying that they won’t be able to make lussekat buns. Prices are soaring. Many blame Tine, a dairy cooperative that is a monopoly, for poor planning. The dairy monopoly places blame on the sudden popularity of a low carbohydrate diet. Kids, the word “shortage” should tell you that something is interfering with the laws of supply and demand. This Norwegian news service article says that “Tine waited too long to take steps to boost production and allow imports into the market.” A Financial Times editorial (December 17/18) concludes: “Planning requires planners to get it right; markets do not. Dairy socialism comes with the risk of butter shortages.” (Of course, if the dairy cooperative were to raise prices enough, there would be no shortages of butter).