Janet Yellen warns high prices could be here to stay

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[–]Hematomato 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (18 children)

Oh, sure, price controls always work out great. Remember when Jimmy Carter just declared that gas was just going to be cheap now because the government said so? And how it devolved into people waiting six hours to fill up their tanks?

[–]Jiminy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (17 children)

He didn't do that but should have

[–]Hematomato 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (16 children)

I looked it up and apparently it was Nixon who set the price controls and left Carter to deal with the mess.

But, yes, price controls caused the '79 energy shortage.

https://www.brookings.edu/articles/energy-price-controls-been-there-done-that/

[–]Jiminy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (15 children)

One of reasons Nixon set up and forced to resign.

Go read that link then come back and apologize

[–]Hematomato 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (14 children)

"In 1979 crude oil prices surged while the nation was still saddled with a Byzantine system of oil price controls inherited from the Nixon administration. We should learn from the solution adopted then: removal of the price controls, coupled with a windfall profits tax on producers and a recycling of the proceeds to consumers. A similar system ought to be put in place for the current situation."

Seems pretty straightforward to me.

It's funny - you usually present yourself as right-wing, but on this thread you sound like Bernie Sanders. "The government should just make everything cheap so we can all afford everything we want."

[–]Jiminy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (13 children)

That just shows you're confused by the left vs right thing. It's bread and circuses for plebes. Ask your self why there is no dem or repubs that has common sense policies together like price controls for economic policies and anti woke social policies. You never get a good choice.

[–]Hematomato 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (12 children)

Price controls are the exact opposite of "common sense policies." The true price of a commodity is set by its supply and demand. Trying to just "decide" what it costs is going to lead to shortages or overruns every single time. The common sense policy is to let the market do its job.

[–]Jiminy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (11 children)

It's some 1984 stuff. Elites have you convinced high prices are better than low ones. Cuz capitalism.

[–]Hematomato 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (10 children)

No, it's just how trade works. Things are valuable in proportion to their scarcity and how much people want them. It's been true for thousands of years.

You can't just say "Cars now cost $100 because there are a lot of them and $100 is a price people can afford." And every time a society tries anything even resembling that, the consequences are severe. Germany in the 1930s, Zimbabwe in the 2010s, the entire Soviet experiment, it was just an object lesson in why you can't base an economy on wishful thinking.

[–]Jiminy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (9 children)

"Just how it works"

Ok let's change that