Price controls: Should the government control how much food and gas cost? – CNN

Price controls can be targeted or imposed on a broad range of goods, setting either a floor or ceiling. The German capital of Berlin, for example, has sought to limit how much rent landlords can charge tenants. In the United Kingdom, regulators limit how much consumers can be charged for energy and some types of rail fares.

Economists who are skeptical of price controls often point to basic economic concepts.

They argue that capping prices encourages companies to produce less of a product, while making it more attractive to consumers. Supply goes down, and demand goes up, with shortages being the inevitable result.

But that doesn’t stop governments around the world from resorting to price controls when inflation gets out of hand. As elections approached late last year in Argentina and annual inflation topped 50%, the government froze the price of over 1,000 household goods.

Last week, Hungarian Prime Minister Viktor Orban said he would cut the price of flour, sugar, sunflower oil, milk, pork leg and chicken breast ahead of a national election in April, according to Reuters. He also extended caps on energy, fuel and mortgages.

via www.cnn.com

I don’t think we’ll see price controls. At least I hope not. Some loons are hoping otherwise, but so far, they are far from the mainstream. If Biden opts for them, we’re in deep trouble.