yeah, right... 
Posted on 02/04/2015 4:14:25 AM PST by elhombrelibre
Food prices are out of control in Russia.
So now, Russian officials are even thinking about putting a price cap on "essential food products," reports the Moscow Times.
"We will see how to efficiently place [the restrictions] into law," the deputy prime minister Arkady Dvorkovich said.
He also added that the government may give "the state competition watchdog more power in enforcing existing retail market regulations," reports the Moscow Times.
(Excerpt) Read more at businessinsider.com ...
Nixon tried price controls too.
Food lines starting in 3...2...1.
Once he gained political influence, Erhard began to formulate a multi-pronged effort to bring West Germany's economy back to life. First, he played a large role in formulating a new currency issued by the Allies to replace the worthless remnant of the past. This plan would reduce the amount of currency available to the public by a staggering 93%, a decision that would reduce the little wealth that German individuals and companies held. In addition, large tax cuts were also instituted in an attempt to spur spending and investment.
The currency was scheduled to be introduced on June 21, 1948. In an extremely controversial move, Erhard also decided to remove price controls on the same day. Erhard was almost universally criticized for his decision. Erhard was brought into the office of U.S. General Lucius Clay, who was the commanding officer overseeing the occupied western half of Germany. Clay told Erhard that his advisors informed him that the German's drastic new policy would be a terrible mistake. Famously, Erhard responded:
"Don't listen to them, General. My advisers tell me the same thing."
But, remarkably, Erhard proved everyone wrong.
Almost overnight, West Germany came to life. Shops immediately became stocked with goods as people realized that the new currency had value. Bartering ceased quickly; the black market ended. As the commercial marketplace took hold, and as people once again had an incentive to work, West Germany's famed sense of industriousness also returned. (For more, read Bartering Through A Cash Crisis.)
In May of 1948, Germans missed approximately 9.5 hours of work a week, spending their time desperately looking for food and other necessities. But in October, just weeks after the new currency was introduced and price controls were lifted, that number was down to 4.2 hours per week. In June, the nation's industrial production was about half of its level in 1936. By the end of the year, it was close to 80%.
Nothing remarkable about it. It's just the way the world works. Price controls don't control prices, they just create shortages.
Thanks for the Erhard story, too bad no one is listening, in Russia or the US.
I agree 100%.
yeah, right...
Price controls? In Russia? Who ever heard of such a thing?
Efficiently? Really? Okay...it's not like this hasn't been tried before. But before you go down that path, name one time where it worked. From current Venezuela to Nixon's price controls on gasoline, name one time where there weren't massive shortages. Hey, Lefties...especially you, Obozo! You payin' attention?
Price controls = Shortages.
Probably the first thing I taught my kids about economics.
Always.
Oh, yeah... that’ll work.
Works every time it’s tried...
if you want to make NOTHING available for sale.
Yep, empty shelves and empty bellies in 3...2...1.
Funny thing there is never a vodka shortage in Russia.
When a nation of drunks is ruled by a small clique of thugs, they know some things must be provided.
Because it can be made by individuals and sold on its own free market.
OK great, let's see the price caps on food, then 3 - 2 - 1 voila FOOD SHORTAGES.
Price controls is a brilliant idea that hasn't worked in at least 2,000 years of attempted implementation. It always creates shortages.
That is the source of inflation, the rising prices are the result.
100%...
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