Price Controls Will Destroy The Economy
Wage, rent, and price controls incoming
(Listen to audio version of me reading👆)
Simply put
When you tell people they can’t charge more for a product, said product then quickly gets bought up and there is a shortage.
When you tell a landlord they can’t raise rents, why would they continue taking care of the property?
If a farmer can’t charge what he needs to stay in business, he will just pack it in and head home.
No more land to farm, no places to rent, no food to eat.
Government always tries to step in and save the day and inevitably bungles it even more.
This is generally when mass killings and famines come about, or at least history tells us so.
Way it should be
When prices go up, it is the the exact way you get prices to come down.
Eventually prices rise enough that the market backs away and says no more.
This allows prices to then come down naturally on their own.
When you force the market to cap their prices it then doesn’t allow for the natural price spikes that can tame the market.
It makes it so everyone can afford it, the product runs out, and the business doesn’t have the revenue to then fund the restocking of the good/service.
When prices go up a business is incentivized to produce more product to fulfill demand.
Why would any business produce something that they cannot fulfill or make money from?
Remember just because you capped the price of something it doesn’t mean all the input costs and expenses that a business owner incurs stay put. Those are constantly rising as well.
Businesses are here to make goods and services for people and provide jobs for the employees.
If they cannot service the clients and make no revenue then the employees cannot get paid and they lose their jobs plus the consumer loses out because the service is unable to be provided or the shelves are bare.
A lower standard of living for all.
So you can see how this is not a good idea, and has never worked.
It was tried in the 70s with Richard Nixon/Jimmy Carter and we had gas lines and surging inflation.
We had this in the Roman Empire and the Egyptian Pharaohs tried and many in between.
Shortages and a lower standard of living are always the result of price controls.
Worst case is it results in governments outright killing its citizens directly or indirectly by famine. (Wonderful article from 2001 explaining more here.)
The free market has a way of bringing the market to equilibrium through price discovery.
We have proved this for thousands or years.
Yet because so few know history and we aren’t taught useful information in school we aren’t there to stand up to the insanity.
We don’t know up from down.
Free market capitalism has been proven to be the only system to bring the most people out of poverty and raise the standard of living for humanity.
Yet, here we are still making the common mistakes of the past and keeping the planet from the true progress it deserves.
This is because of central bankers and their banking cartel that has control of the issuance of currency across the world.
Until we separate money from state and at the very least have a real money that we use (not a fiat currency) we will continue to struggle, lose freedoms, and live with a lower standard of life.
This is why I have hitched myself to the bitcoin wagon.
It’s the only finite asset besides our time that gives us true measurement and controlled experiments.
Price signals and price discovery will come back into the market and it will wash over the world creating a higher standard of living.
Exactly opposite of the inflationary fiat currency used by the global central bankers controlling the world that we live in now.
Stay strong,