Why can't you counter inflation with price controls?

Why can't you counter inflation with price controls?

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Seems like that just shifts the loss-of-value burden onto the business owner.

Have price controls at every end of the supply/financial chain. Why not?

How? If none of their costs change, how are they affected?

You just end up with empty shelves.
Imagine if everyone went to the supermarket tomorrow and everything cost 1 cent.

What are price controls? Do they just regulate that a pack of gum can be sold for at most $1? Is that a correct example?

>Why can't you counter inflation with price controls?
You should ask Nixon - thats exactly what he tried.

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because of black market dude

Thats not what it means sven. You obviously keep the price roughly where it was & you do it all the way along the supply chain.

Yes. Bunch of ways to calculate what the price should be, it tends towards cost production. And each step of production tends towards the cost of labour & materials, and so on.

Basically, you solve the pricing problem by treating the whole economy as some big set of equations & solving it with a computer. The problem is getting enough information to accurately do that - the problem the commies had (among other lmao). But these days it's little different to how a massive corporation does its internal management, and its actually feasible in principle.

>hey what if we countered the plummeting value of currency by making it worth nothing at all?

Why would people selling stuff at more cost than the stores be a thing? How would that affect it?

Theoretically you could.

Problem is large corperations control the government and they want none of that.

How stupid are you ?
>yes

The stores would close

because when you price cap a thing it runs out as nobody in their right mind will want to produce it at a loss

Brainlet. Try to answer why he's wrong? He's literally just asking the question, not advocating it. Explain why it won't work.

Right answer.

because there will be nothing in stores blyad

> guys why don't we feed all the data in the world into a supercomputer and have it calculate how much of what everyone should get when
> that way we won't even need money
inflation has causes and if those causes aren't addressed the best you can do is steal from the middle class to pay for whatever the problem is

Basically people dont obey price controls and buy and sell at whatever price they want. But because it is illegal most business get scared and just close so the total supply is reduced.

Why would they close?

Who is producing it at a loss? The price is set at each step & accounting for labour & manufacturing costs (plus materials). That's literally the whole premise - the price is set to break even down the whole supply chain, including the wages needed to pay everyone.

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Conservation of matter. You can't get something from nothing. Fucking around with money doesn't cause more stuff to be produced. And money only means anything because of stuff. Without stuff money would be toilet paper.

Shortages. If you want proce controls to work, you also need to implement rationing

>Basically, you solve the pricing problem by treating the whole economy as some big set of equations & solving it with a computer. The problem is getting enough information to accurately do that - the problem the commies had (among other lmao). But these days it's little different to how a massive corporation does its internal management, and its actually feasible in principle
T; Comrade Brezhnev. The Soviets actually tried this. The problem was that there were too many inputs, and the planners literally couldn't gather them all.

You get shortage of goods. Supply and demand. If you artificially lower price demand goes up. Price is up because demand is up. You further increase demand by lowering price leading to shortage. Happens every time.

>the price is set at each step
oh boy
do you have some sort of special education
of the marxist kind ?

The prices of everything floats
Constantly !
that's how the market works

not only goverment involvement (by stupid people) makes things worse
it's also a playground for coruption schemes
every
single
TIME

You're handwaving again. Why wouldn't that work?

So people will willingly pay more for the same product they can get cheaper in a store with less hassle? Why is that? Or people will....magically buy out the whole store because reasons? Nothing stops either of those things from happening right now. And since businesses set their prices against each other, there's already price fixing - it's just floating against the free market rather than the outcome of some other method.

> set price for any commodity because demand is exceeding supply
> anyone with hands on any amount of supply can now sell on black market for whatever he wishes
> B-b-but... dats against da law!
MFW you cant even figure out how to keep your rapefugees from raping

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Oh HELL YEAH
SOCIALISM !!

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Right. We used to ration pussy, you could only have one and you would have to feed, clothe, and house it, and consequently we had it price controlled where the average man could afford one when he got out of his apprentinceship instead of at mid life.
Then some coomers in education started saying that it was cruel to deny womyn the right to be hypergamous.

No, people first go to the store but its closed.

I'm not a commie. I'm just arguing the point because I don't really see why it wouldn't work in principle. Why can't you then set the price at each point along the supply chain as well? And alter those prices (and thus the prices of the end product) in line with changes to costs earlier in the chain etc? This is literally what big businesses already do internally when doing budget allocation.

And why is it closed though? Still not an answer.

Fluctuating pricing prevents the entire store from being emptied. Prices go up as demand goes up. When prices stay up production increases to cash in. As production catches up and supplies the demand it inadvertently creates a surplus and lowers prices. This what the ghey old Scot meant by the invisible hand. The hand is always tipping the scales back towards equilibrium.

That only works (maybe, perhaps) f you control the entire supply chain but its never the case in globalization. You have foreign customers and suppliers that do not abide by the price controls. The chain breaks there.

If you want to counter inflation
there is a simple solution

3% cap on printing of money (print no more than 3% of this specific currency that is in circulation)

around 3% is the economic growth on average
so the two will counter each other resulting in ZERO inflation

also the printing of money should only be for the budget instead of taxes
and not be a part of the loan scam industry
you'll be suprised how many of the world's problems will instantly dissapear
almost like they were artificial in the first place...

Because inflation isn’t about prices increasing, that’s a consequence of something else. Inflation is about money losing its buying power/value. You cannot stop it with price control either way, because even though you set one price by law, the production costs keep increasing. In the end, companies go broke or sell in the black market where stupid price controls aren’t enforced.

Goverment is like a machine (it technically is)

the simpler it is the more reliably it works
overbloated goverment is inherently corrupt and it always ends ugly
ALWAYS

Error alone needs the support of the goverment
the truth can stand on it's own
very wise words from a very wise man
"We the people" is his handwriting

In practice its because their suppliers are foreign and they raised their prices. Nobody has experience with price controls in closed economies.

>Why can't you counter inflation with price controls?
You will never have anything innovative or any technology advance because it’ll cost too much to bring it to market without losing money. It’s not just technology either, new or better quality foods won’t be introduced

>Why can't you counter inflation with price controls?
because you end up with no goods available at any price

> low prices makes demand rise...
thats not how it works retard.
the price for steer manure is surprisingly affordable, and yet demand for cow shit remains at all time lows.
you actually have to PAY somebody to haul it away. figure that out.

artificially low prices restrict supply, it does not expand demand.
only through studying economics at a university could anyone become so stupid about money
if i can only make 1% per widget because govt price controls are in place, why the fuck would i make widgets instead of modulated framistans which cost only a few cents more to produce but can be sold for whatever the market will bear?
would you go into a business where the govt told you "You are prohibited by law from making more then $40k/year" if there was any other option?
stop lying to yourself.
if there were no other options, you would enter the black market, engage in crime, or sell poison milk to school children if that was the only way to pay your bills

>You should ask Nixon - thats exactly what he tried.
One of the big fails of his administration, obviously second to anything Kissinger-related

>implying you can't

>burger education

The only reason you can't do that today is because markets are connected, so even if you can control internally, if (((someone))) from the outside fucks you up through their place in the supply chain, then you can have inflation spiralling out of control. The stronger you local economy (i.e. how much you produce and consume of your own internal production and what you produce) the less external factors affect you and you can place proper controls for prices.

Because it's an incredibly easy way to make money. It happens every day, have you ever heard of 'scalpers'? Every time a sporting event is set to be a big deal a few assholes go in and pre-purchase as many tickets as they can from the stadium and then re-sell them at jack up rates literally right outside the front door on game day. Even though it is illegal to do so it is a completely normal and expected practice

you obviously didnt study economics.
good for you user, make sure you never go down that retard rabbit hole.
studying economics at a university is the surest way to quickly become absolute shit at handling money.

You lose the economic signals floating sales and demand give you, and no one knows how much to make of what any more

You listened too much in business college, you're supposed to understand that most of what they're saying is bullshit and just take away some vague guidelines and learn from exposure to people with experience. Prices are almost entirely determined by what companies think they can get away with selling them at, cost formulas are just used a general rule of thumb when they have nothing else to go by, when you have the product in from of you and ready to sell all that matters is what you can get for it. The supply chain cost stuff basically just effects whether or not they cancel production due to a lack of profit.

> mexican intellectuals
damn youre stupid.
how are mexicant maize farmers doing?
ohh thats right, you get all your corn from iowa now, and if iowa triples the price for your corn, how long before you can get back in the tortilla making business? whats that? 3-5 years?
surely you could create an agricultural base, a transportation system and a market almost instantly, by simply creating Price Controls with a stroke of a pen!
who wouldnt want to grow corn for the set govt price of 12 pesos per kilo? sure, you will have to pay for the land, seed, labour, silage, water, and transportation to the market, which costs 35 pesos per kilo, but Govt Experts and Economists are totally looking into the issue, so you know there will be a totally awesome solution soon....

I don't know how to answer your question, but I know Manca is the answer to my blue balls.

Not him, but I studied it as a requirement but didn't pay attention at all lol, the black bitch they got to run the class had no understanding of what any of it actually meant despite holding an Ivy League degree and she just showed incomprehnsible graphs and spouted word salad that made zero sense if you actually bothered to figure out what it meant. I learned basics of economics that are actually useful in like 45 minute class back in high school and spaced out the rest of that semester and college was mostly just a series of autists trying to explain the same concepts again but less intuitive.

>ohh thats right, you get all your corn from iowa now, and if iowa triples the price for your corn, how long before you can get back in the tortilla making business? whats that? 3-5 years?
That's for illustrating why we can't control maize prices

>how are mexicant maize farmers doing?
improving, finally all farmers got warranty prices and transgenic seeds have been banned in the country. On the warranty prices, it only applies for internal consumption, exporters don't get warranty prices.

>why cant you make wealth pop into existence from nothing by rewarding your demand to reality that it magically churn it out?

ahahahaahahahaha
oh wow

We should price cap your labor too
16 pesos (no idea how much is that) per 8 hour day

after all what's the point in price capping if it's above the current price

ohh yeah, here at this factory, we make random shit and then hope it sells.
i know, thats a pretty "dynamic" strategy, but thats how everyone does it.
we just produce tons and tons of Nigger Baby Dolls, Star Wars The Woke Generation action figures, "Im with Her" t-shirts and pussy hats, and then ship them off to be sold for whatever the market decides they are worth.
we dont make much money, but we are doing our "Fair Share" to ensure that retards with a Masters Degree in Feminist Theory and Economics dont wind up as prostitutes on the street.
thanks for visiting Progressive Enterprises inc (a worker owned co-op)! we will be bankrupt tomorrow, but we feel so good about what we have done, as a neo-marxist workers collective !

>Why can't you counter inflation with price controls?

Because the monetary supply increases and the cost of the supplies increases too.

>We should price cap your labor too
Do it on your own country.
Also
>tfw minimum wage jumped from 80 to 100 last year and then to 123 in the country and to 185MXN near the border this year.
>nearly a third increase in two years

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what

You can counter inflation with taxation.