If you were around in the 80s – and if you, like me, grew up in a small town without a lot of worldly goods – no doubt you remember government cheese.
This cheese was created from surplus dairy products that the government bought up from U.S. farmers who couldn’t sell all of it (a program that started back during the Great Depression). By 1983, this vast cheese and butter stockpile was valued at over $4 billion and actually had to be stored in caves in Missouri (not even joking).
In 1981, President Reagan officially released 30 million pounds of cheese from the cave stockpile, to be distributed to underprivileged families in giant blocks.
The cheese was strictly regulated for maximum melt- and slice-ability. According to a USDA document called “PCD5 Pasteurized Process American Cheese for Use in Domestic Programs,” “The cheese shall have been tested for meltability in accordance with AMS Methods of Laboratory Analysis, and shall be at Number 3 or higher.”
Number 3 level meltability made really, really good tacos, nachos, and sandwiches, apparently. There are whole internet threads and forums devoted to how tasty this stuff was, how perfectly it melted in grilled cheese sandwiches and omelets – and how sad that it’s not around anymore.
The moral of this story – other than that processed cheese is shamefully delicious – is that often, buying in bulk, saving, and storing really pays off.
That’s the whole mentality behind America’s love affair with its favorite wholesale outlets like Costco and Sam’s Club – buy lots, save, store, and you’ll have plenty available when you need it.
It’s also the principle behind a wholesale staples trade that’s doing very well right now in our 10-Minute Millionaire Insider portfolio.
We bought, we held on, we profited on the first half – we held on some more… and now the second half is up 35% and still climbing.