Look at history at every time prices controls have been attempted:
The 'gas crisis' of the mid 70's is a direct result of price controls imposed by Pres. Carter. Gas stations were being required to sell gasoline for less than what they paid for it. So they sat on it (duh). The result was a shortage of gasoline and long lines.
Minimum wage laws are price controls. Each time they've been set at levels higher than market prices, employers have simply laid off people and done with less, usually resorting to automation to keep production up. In other words, a shortage of unskilled labor jobs. This of course creates a glut in unskilled workers, further depressing market prices (wages) that would naturally occur. So...more people on various welfare programs. Programs that are paid for by taking wealth from productive people and giving it to unproductive people (socialism), and the government taking a nice fat cut off the top in the process.
Price controls on apartment rentals, causing landlords to convert the property to non-apartment use, causing a shortage of apartments.
Price controls on college tuition, making them even more expensive then ever before and paid for by taxpayers, and producing graduates with useless degrees. A shortage of education.
Price controls on medical insurance (ObamaCare), causing massive costs in government and a shortage of useful policies, resulting in much higher prices for those policies.
Price controls on used cars (Obama's Cash for Clunkers program), resulting in massive costs in government and a shortage of viable used cars and parts for them.
Price controls on wind generators and solar power panels through government subsidies, and higher prices imposed on coal, oil, and natural gas products resulting in insufficient energy resources (such as in the SOTC), fraud, and high costs of energy. In other words, an energy shortage.
Price controls on the cost of money itself (The Federal Reserve) resulting in low returns on savings (negative, in most cases due to inflation also caused by the Federal Reserve and Congress), loss in the value of the dollar, a distorted loan market where businesses borrow what turns out to be insufficient funds to complete a project, due to inflation, or the the inability to access funds, even when people are saving. in other words, a loan shortage or a cash shortage, or inflation (a wealth shortage).
In 1910, the price of an ounce of gold was $20. Today it is approx. $1730 per ounce. The price of other commodities has gone up correspondingly as well. Remember when a candy bar cost only ten cents and gas was only 0.25/gallon?
We ARE going backwards.
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TRUMP WILL TAKE FORTY STATES...UNLESS THE SAME IDIOTS WHO BROUGHT US THE 2020 DUNCE-O-CRAT IOWA CLUSTERFUCK CONTINUE THEIR SEDITIOUS ACTIVITIES...THEN HE WILL WIN EVEN MORE ..UNLESS THE RED CHINESE AND DNC COLLUDE, USE A PANDEMIC, AND THEN THE DEMOCRATS VIOLATE ARTICLE II OF THE CONSTITUTION, TO FACILLITATE MILLIONS OF ILLEGAL, UNVETTED, MAIL IN BALLOTS IN THE DARK OF NIGHT..
De Oppresso Liber
Jack (02-26-2021)
evince (02-26-2021)
TRUMP WILL TAKE FORTY STATES...UNLESS THE SAME IDIOTS WHO BROUGHT US THE 2020 DUNCE-O-CRAT IOWA CLUSTERFUCK CONTINUE THEIR SEDITIOUS ACTIVITIES...THEN HE WILL WIN EVEN MORE ..UNLESS THE RED CHINESE AND DNC COLLUDE, USE A PANDEMIC, AND THEN THE DEMOCRATS VIOLATE ARTICLE II OF THE CONSTITUTION, TO FACILLITATE MILLIONS OF ILLEGAL, UNVETTED, MAIL IN BALLOTS IN THE DARK OF NIGHT..
De Oppresso Liber
Wolverine (03-01-2021)
Compare and contrast:
Then:
Now:
Indeed. There are many ways in which a company (let's say a small business that, in part, employs six basic laborers who earn $10/hr) could react to such a price control, and none of them are good.
One such option is that the company eliminates the position, since they can't afford to raise their labor expense from $4,800/payroll to $7,200/payroll (which amounts to a whopping $62,400/yr INCREASE in their labor expense). This elimination of basic laborers might result in added automation (if it costs less than the labor expense increase), or it might simply result in a shift of those responsibilities onto the team of "intermediate laborers" who were already getting paid $16/hr. Heck, it might even result in the business going completely belly up due to not being able to turn an adequate (if any) profit on their products/services anymore.
--- At best, this situation results in the six basic laborers now making $0/hr instead of $10/hr. At worst, this results in the whole company's workforce making $0/hr, as the company no longer exists.
Another such option is that the company instead reduces the hours of that position (making it a part time position instead of a full time one)? In order to keep the labor expense for those workers at $4,800/payroll, the company would have to reduce those six employees' hours down to 53.33hrs/payroll (or 26.67hrs/week)
--- At best, those six basic laborers have now just lost their health insurance / 401k / etc benefits because they are no longer "full time" employees...
Price controls simply do not work. They lead to shortages.
Darth Omar (02-26-2021)
36 days and Biden is still our president.
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