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>introduced serious price controls and other counter-inflationary measures Price controls are not effective in curbing inflation [1] And they have a deleteriou
by baremetal 4y ago
>introduced serious price controls and other counter-inflationary measures
Price controls are not effective in curbing inflation [1] And they have a deleterious effect on production. For example: no farmer is gonna sell his produce at a price that is less than his cost to produce. So if you control the price, there will be nothing on the shelf.
[1]https://www.stlouisfed.org/publications/regional-economist/2022/mar/why-price-controls-should-stay-history-books https://www.stlouisfed.org/publications/regional-economist/2...
- mschuster91 4y agoPrice controls can also be of the form "COGS+5%". These allow profitable operation but limit excess profits. Or you can do post-fact price controls by comparing profits now with average profits over the last years and taxing everything above at 100%. All it needs is the political will to help the people.
- nonethewiser 4y agoIs this what the Communist Party of China does?
- junofan 4y agoCost-plus pricing on commodities will fuck with forecasting. There aren’t good tools. You’ll get shortages. It’s fine for natural monopolies.
- deleted 4y ago[deleted]