Economics

1713 readers

1 users here now

founded 5 years ago

MODERATORS

Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles? (lemmy.crimedad.work)

submitted 2 months ago by CrimeDad@lemmy.crimedad.work to c/economics@lemmy.ml

15 comments fedilink hide all child comments

cross-posted from: https://jorts.horse/users/fathermcgruder/statuses/113008342518705813

Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?

#economics #HarrisWalz #PriceControls #gouging

@crosspost

you are viewing a single comment's thread
view the rest of the comments

[–] gaiussabinus@lemmy.world 2 points 2 months ago (8 children)

So you spend taxes for product at market rate and then depress the price using your money? The government doesn't make anything so it would need to acquire the materials with some kind of cost that will always come from the tax base 100% of the time.

[–] hotelbravo722@slrpnk.net 1 points 2 months ago

I agree the money is going to come from the monetary supply and government acting as buyer and distributor of goods would be incredibly problematic. A subsidy of some kind for domestic production + placing a max profit markup IMO would be a more effective method.

load more comments (7 replies)