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Read Basic Economics by Thomas Sowell. The only thing price controls do is cause shortages and long term price increases. If companies are able to raise price
by treeman79 3y ago
Read Basic Economics by Thomas Sowell. The only thing price controls do is cause shortages and long term price increases.
If companies are able to raise prices for long periods and make large prophet, that means something is completely broken.
Competition would bring in new people that offer the same goods or services at lower prices. Government regulations controls, etc stop that and interfere with natural markets.
Russia had a long history of price controls, and it never worked well.
- vkou 3y agoYou can solve price gouging from the other end. Instead of capping prices at the point of sale, tax profits. Right now, prices are growing, mostly due to an increase in profit margins. If the market is failing us, because it can't optimize those profit margins down, it's the government's job to take and redistribute that surplus.
- failuser 3y agoDo you also propose to stop interfering in the market by providing massive government subsidies to the farmers? True market economy tend to run away and blow, big players tend to consolidate and form monopolies, the thing we have not is a very complicated compromise between free market, regulations and unspoken traditions. Please stop pretending that these things are obvious and easy.