Posted on 03/05/2022 1:38:35 PM PST by Roman_War_Criminal
In the US and around the world, record wage and price increases are becoming the norm.
It’s the beginning of an accelerating wage price spiral, and could continue on for several decades.
Most people alive today never experienced the 1970’s period of runaway inflation. They are quickly coming to terms with their massive loss of their purchasing power. Like a runaway train, once governments lose control, it’s nearly impossible to stop. In an effort to put the genie back in the bottle, they will be forced resort to wage and price controls. As with Nixon’s failed experiment 51 years ago, these efforts are doomed to failure. Here’s 8 reasons why.
1. No one really wants to stop it. Jerome Powell no longer claims that inflation is transitory and his efforts at containment are half-hearted.
(Excerpt) Read more at financialsurvivalnetwork.com ...
You can’t fool the supply-and-demand curve.
Wage & Price controls have a history of FAILURE. For damn’ good reason.
Oh boy. This is frightening.
It seems so many people in power have adopted a “If we can’t have it, let it burn” attitude.
They pick winners and losers when free market controls are pushed to failure. They are coming.
“You can’t fool the supply-and-demand curve.”
Absolutely true. Nixon even admitted price controls don’t work — not long before he imposed them. The result then, as always, was shortages or products disappearing completely.
But for the communist totalitarians now in charge, it means they can regulate what products people are allowed to buy. Food rationing and Soviet Union food lines here we come.
Biden, Biden, Biden, Biden, Biden, Biden, Biden, Biden.
Because real solutions require accountability and that’s long been off the table? Just a guess..
Hi.
How many times in the 20th century have wage and price controls worked?
5.56mm
They could start by shutting down the printing presses for a while. As long as they continue printing “money” with nothing to back it (Fiat money) you are going have inflation. More paper cash = More inflation. Just take a look at the inflation rate since 1971 when Nixon decided to use the “Faith in the United States” instead of gold to back our currency.
Of course looking back at the inflation of the dollar since1913 with the establishment of a central bank, (The Federal Exchange) is enough to make normal people want to just start the whole thing over.
Price controls will result in even more empty shelves, then the call for the government to mandate that companies continue to produce at a loss, then the government nationalizing businesses and using force to assure delivery, then the eating of zoo animals like Venezuela, etc. This is a road we should not go down IMO.
Because they worked so well for Nixon.
“Wage & Price controls have a history of FAILURE.”
Of course that means the Dimjo Administration will put them in effect within a month.
I remember them. As soon as they were introduced, the black market exploded.
They always work /sarc
In many countries wage and price controls ultimately lead to rationing.
Since we are becoming a third world &^%$hole in a hurry, this would not surprise me.
“Most people alive today never experienced the 1970’s period of runaway inflation.”
Whoa, that’s a sobering thought. I remember it like it happened yesterday. How did I get so old?
When COVID was first getting started, whoever would have thought the government would go nuts and crank the printing presses up to 11 for a couple of years igniting inflation? I’ve been through many pandemics (polio, Asian Flu, Hong Kong flu, N1H1, Bird flu etc) and somehow survived them all. I thought this would pass quickly and the government wouldn’t destroy the economy for their power grab. Boy, was I ever wrong.
Now, as we just started retirement, the government sh!t show has fouled everything up. Thank God we are long on real estate.
That is what I have never understood. If Nixon admitted they did not work; why would he impose them in the first place?
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