Posted on 10/02/2021 7:59:10 AM PDT by dynachrome
Prime Minister Jean Castex yesterday (September 30) announced a series of ‘price protection’ measures to counter rising energy prices in France.
In October, the regulated rate for gas is increasing by 12.6%.
This rate is set by the Economy and Energy Ministries and the Commission de régulation de l’énergie (CRE) and applied by Engie, while other providers may use it to inform their tariffs. Certain formulas are used, linked to factors like the cost of supply and prices on the world markets.
Nearly three million Engie customers on regulated tariffs will be affected by the increase.
All households not on regulated tariffs are on 'market' rates, which depend on commercial decisions of firms and the details of a customer's contract. Some, for example, promise a 'fixed' price for one to four years (though not including any variations due to changes in taxes), so will not be affected by this. In other cases 'market' rates may nonetheless be influenced by the rises in the regulated ones, and, inevitably, by the same pressures that inform the regulated rise (such as the current high demand and prices in Asia).
(Excerpt) Read more at connexionfrance.com ...
That worked very well for Canada during the 70’s. (sarc)
Hopefully it will destroy socialism in France.
Smart! Price controls have always worked in the past! /s
Massive shortages on the horizon
Jimmuh Carter is smiling...
Standard operating procedure for the elites and the mass media they own:
(1) Inflate the currency with insane government spending.
(2) Deny that there is inflation, claim that anyone who thinks otherwise is a deranged conspiracy theorist.
(3) Admit that there is inflation, but blame it on “greedy corporations”.
(4) Put in price controls to “whip inflation now”.
(5) Shortages result—blame it on deranged conspiracy theorists who are “hoarders”
(6) Rationing—demand sacrifice of the populace during the “emergency”
So predicable...yawn...
They could reduce the tax on gas but then they either raise taxes someplace else, or boost inflation with deficit spending.
” Price controls”
Yep - if you think energy is expensive now, just wait till we take away the incentive for producers to make more.
Socialism always fails, but they never learn. Socialism/communism will always be popular as long as people think they can get something for nothing.
“Massive shortages on the horizon”
Yep, that’s one thing you can ALWAYS count on - where there are price controls (that result in lower than free market prices for goods), there will ALWAYS be shortages. The Soviet Union couldn’t prevent that, the UK couldn’t prevent that, the US couldn’t prevent that, and France will not be able to prevent that.
That’s a pretty good list! But maybe between your steps 2 and 3:
- Claim that any inflation is “transitory”, and is of no concern.
Gas company replies “Gee, we just don’t have any natural gas at that price point“.
The “transitory” argument was a new one—nobody even attempted that blatant and laughable lie back in the Ford/Carter days.
Paging Richard Nixon.
Just take the evil profit out of the system and shoot the wreckers. That will solve the problem.
“Comrades, report Kulaks to the nearest NKVD officer!”
That depends on your definition of success.
When Teddy Roosevelt implemented price controls with the Hepburn Rate Control bill, it nearly destroyed the transportation industry.
That’s why we have trucking and 18 wheelers today. Trucks were the market’s go-around response to Theodore’s war on the trains.
From the progressive point of view(A view I do not agree with, BTW) price controls are a smashing success. That’s why they keep doing it.
Progressivism does not define “success” the same way as conservatism does.
“France brings in ‘price protection’ measures amid soaring energy rates”
ALWAYS guaranteed to create instant shortages [see: Venezuela]
Let me see, supply, demand, and price. There has to be a relationship in there somewhere.
Create a crisis and promptly offer a communist solution.
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