Re: Re: Thanks America!
By: Mike to Nightfox on Sun Nov 10 2024 01:13 am
> In my opinion, politicians at the time should have frozen prices to prevent
> damage to
> citizens. Actually their oath of office, right?
Germany tried price caps to put a stop to runaway inflation when it concerned ba
sic products - milk, vegetables, that sort of stuff - soon after WWII and it wor
ked very poorly.
Spain also underwent price capping for groceries around the same time.
China had a crisis not long ago because they capped the price of electricity.
The issue with price capping is that you make it less interesting for people to
produce the capped goods so they stop doing it altogether. In the case of China,
maybe the problem is they want to keep producing, but can't afford to, because
the capped prices don't allow to pay their suppliers.
Somethinc good came out of Spanish price capping, though. Everybody started usin
g black markets and learnt to operate beyond the law.
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