Posted on 12/30/2021 12:51:39 PM PST by RomanSoldier19
We used strategic price controls after inflation sky-rocketed after the second world war. There’s a strong case for doing so again now;
nflation is near a 40-year high. Central banks around the world just promised to intervene. However, a critical factor that is driving up prices remains largely overlooked: an explosion in profits. In 2021, US non-financial profit margins have reached levels not seen since the aftermath of the second world war. This is no coincidence. The end of the war required a sudden restructuring of production which created bottlenecks similar to those caused by the pandemic. Then and now large corporations with market power have used supply problems as an opportunity to increase prices and scoop windfall profits. The Federal Reserve has taken a hawkish turn this month. But cutting monetary stimulus will not fix supply chains. What we need instead is a serious conversation about strategic price controls – just like after the war.
Today economists are divided into two camps on the inflation question: team Transitory argues we ought not to worry about inflation since it will soon go away. Team Stagflation urges for fiscal restraint and a raise in interest rates. But there is a third option: the government could target the specific prices that drive inflation instead of moving to austerity which risks a recession.
To use a metaphor: if your house is on fire, you would not want to wait until the fire eventually dies out. Neither do you wish to destroy the house by flooding it. A skillful firefighter extinguishes the fire where it is burning to prevent contagion and save the house. History teaches us that such a targeted approach is also possible for price increases.
(Excerpt) Read more at theguardian.com ...
...these morons never learn...price controls have never worked...if they did, why not do it all the time...
Oh God, No. I have been predicting this.
Plus there is a big difference between fighting a fire and fighting inflation.
When you start talking about putting a fire out, the flames don’t react.
People react.
Reply..
Just as the photo shows, that is the result.
There is a solution. Do away with all the politicians and soon the problem will resolve.
They sure worked real well under Nixon. (Sarcasm On)
Ted Kennedy advocated for them at the same stage of inflation. He lost to Carter and shut up about it. Same old libs.
Price Controls - which have failed all the way back to the days of the Roman Emperor Diocletian.
Instead of post-WWII, why not recall Nixon’s price controls? They failed.
Yeah...price controls worked out so great back when Nixon implemented them. Good grief are we surrounded by idiots?
“Isabella Weber is an assistant professor of economics at the University of Massachusetts Amherst and the author of How China Escaped Shock Therapy”
Nuff said.
awww.. socialism .. ain’t it grand!!??
always.. ALWAYS goes the same way
they spend spend spend until they run out of OTHER peoples money, then inflation skyrockets.. then price controls... then a crack-down on businesses along with threats of jail, then government takes over industries, then PRESTO !!! communism !
Here is an idea to consider: the government only spends what it can afford.
And the producers, having made their money, padlock the door after the last employee goes home, moves to their homes on the golf course, beach or mountains and that’s that
Well, idiots and evil.
Deep State hires the idiots to hide behind while doing their evil.
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