President Biden has begun to accuse stores of overcharging shoppers, as food costs remain a burden for consumers and a political problem for the president.
You have to be some kind of moron to think it would be a good idea for the president to start dictating prices to grocery chains. Unfortunately Lemmy is largely populated by idiots and delusional fools, so I expect this observation to be unpopular.
Do not respond to my comments again with personal attacks. If you do this again, or respond before fixing this comment, I will unfortunately have to report you to the community moderators.
Until you fix it, your comment is not worth addressing.
Ad hominem aside, TheSanSabaSongbird’s basic point, that price controls are an economically illiterate idea, is right. Prices are an economy’s way of signalling scarcity, so messing with that signal prevents the underlying problem from being solved. Inflation has to be tackled through monetary and fiscal policy; the alternative approach, micromanaging prices, is how you get to the economy of Argentina.
That is a big over simplification of how prices work. As another commenter pointed out, lack competition and a high barrier to entry can cause elevated prices even in the absence of scarcity. Price controls are found all over the economy and do not have the effects you allude to.
More in the news: government official complains about matters within their jurisdiction.
You have to be some kind of moron to think it would be a good idea for the president to start dictating prices to grocery chains. Unfortunately Lemmy is largely populated by idiots and delusional fools, so I expect this observation to be unpopular.
Read a history book sometime. It’s been done in the past.
I’m not sure why you’d advocate for it if you’ve actually read the history, it’s a terrible idea that has failed spectacularly in the past
mate half the food you eat is subsidized.
Talking about price controls which are not the same thing at all. Read about the Nixon shock, for example.
Just because you say it, doesn’t make it true.
Do not respond to my comments again with personal attacks. If you do this again, or respond before fixing this comment, I will unfortunately have to report you to the community moderators.
Until you fix it, your comment is not worth addressing.
Ad hominem aside, TheSanSabaSongbird’s basic point, that price controls are an economically illiterate idea, is right. Prices are an economy’s way of signalling scarcity, so messing with that signal prevents the underlying problem from being solved. Inflation has to be tackled through monetary and fiscal policy; the alternative approach, micromanaging prices, is how you get to the economy of Argentina.
That is a big over simplification of how prices work. As another commenter pointed out, lack competition and a high barrier to entry can cause elevated prices even in the absence of scarcity. Price controls are found all over the economy and do not have the effects you allude to.
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No, you don’t understand. The invisible hand is attached to the wrist of God. Prices are never manipulated and gouging is a good thing.