CNN Business wants to know if the government should control the price of food and gas. Why? Because Vincent Maduro in Venezuela and the Castro Brothers in Cuba did it so well? How about Mao or Stalin?
“People are paying a lot more for food, gas, cars, and services, and inflation isn’t over yet as the pandemic continues to distort the economy. So should governments consider setting the price of essential goods?”
“It’s been done before, typically during times of crisis, but for most mainstream economists, the answer to this question is a resounding “no.” Limiting how much companies can charge will distort markets, they argue, causing shortages and exacerbating supply chain problems while only temporarily reducing inflation,” says CNN.
An MIT professor was quoted in the article as saying price controls are “a terrible idea.” The article also notes that only a quarter of economists agree [communists?] with price controls and 60% disagree or strongly disagree.
“Just stop. Seriously,” Austan Goolsbee, a professor at the University of Chicago, said in response to the question. Goolsbee previously served as chairman of the Council of Economics Advisers under former President Barack Obama.
The author continues, “Still, with annual inflation running at a four-decade high of 7% and midterm elections approaching, price controls could feature in future debates about how to reduce prices, particularly if actions taken this year by the Federal Reserve fail to tame inflation.”
That wouldn’t even hit the core problem. It will merely put people out of business. They need to stop spending, stop printing, cut regulations, taxes and open up our fossil fuel sector.
The question is ignorant and CNN Business got dumber towards the end.
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