Awesome as usual. Can‘t wait for the follow up. Please make sure to include the all time interventionist favourite of „positive externalities“, which has become somewhat of a mantra for those advocating in favour of more intervention.
@David.Marquez4 жыл бұрын
Definitely one of my favourite explanations of the danger of price controls. What do you think Austrian economists would say about a government subsidizing essential goods rather than imposing a maximum price on them?
@IWLDELJ4 жыл бұрын
Subsidization tends to distort markets, and have their own set of unintended consequences.
@berntengdahl15192 жыл бұрын
Subsidies tend to increase the supply and demand of a good as well as decrease the price. So if you think that some goods are undersupplied, a subsidy can be the solution.
@pigeon81754 жыл бұрын
My fellow Citizen of Milky Way. Please make videos regularly.
@idrissberchil254 жыл бұрын
Yaaay he's back
@idrissberchil253 жыл бұрын
@@brixtonaiden6997 stfu bots
@catcat78354 жыл бұрын
Its not that easy as described. In countries with huge ammount of monopolists there will be no other way then to buy for their preset prices or not to buy at all. If the question to buy a loaf of bread, a bucket of milk or not to buy, then there is no question, the answer is to buy, because you have to eat something and without preset minimum controlled prices or in other words a subsidized prices, there will be no option for poor people to have their meal. The only drawback is that other layers of society will pay for the controlled prices via taxes, but problem in such case is not a controlled prices, rather monopolists and oligopolists...
@dhyskRand3 жыл бұрын
Sure it is, its just in this case the intervention is being implemented by the monopolies or oligopolies causing the issue in the first place.
@AnimMouse3 жыл бұрын
Monopoly is caused by intervention, there is no monopoly in a free market.
@Jonas-qg6jw2 жыл бұрын
@@AnimMouse you are so full of ideology. It’s insane.
@aadityas.98204 жыл бұрын
Thank You So Much EconClips :)
@davidchristian84734 жыл бұрын
Can you comment on video about the venezuelans people going to cryptocurrency to flee from inflation? I would love to watch.
@BubbaShaffer4 жыл бұрын
Very well done. I would like to see Walter Block quoted..
@marunio4352 жыл бұрын
Minimum prices will cause companies to end producing these products. Who will force them to produce them below any cost?
@sohaillokhandwalla20924 жыл бұрын
This is why we need to get rid of the minimum wage
@MUSIC-qe7xf3 жыл бұрын
So we need price control measures when commodity prices rise??
@Omer1996E.C2 жыл бұрын
No, we don't need them, except if there was a monopoly on it
@Jonas-qg6jw2 жыл бұрын
The whole Problem with this theory is that the goods don’t go to the people who value it the most, but to the people that can afford it the most. That is okay when we are talking about luxury goods. But when it comes to essential goods, like oil, which is a problem we have right now, everyone values it equally, but not everyone has the means to pay. So price controlling plus rationing is imo the better option than leaving the market to itself because that would only, as always, favor the upper class.
@plasmorarca104415 күн бұрын
but wouldn’t the introduction of a price limit on a commodity such as oil make it unattainable to many countries from predatory markets like Saudi Arabia, or Russia? Furthermore it would make every company adopt the absolute market cap to just earn any type of profit. It would also negatively effect the lower class as the already expensive and scarce commodity such as oil an even more expensive purchase. A solution to this would be to only drill in America (or wherever you live) to negate the price of imports and trading with nations like Saudi Arabia and Russia. However this would make international trade of oil impossible as each country would have different market caps. IMO the government needs to stay out of the market and encourage more competition like when the US govt broke up Standard Oil, or the steel monopolies to drive prices down as different sources are created.
@davidh.394211 күн бұрын
Wrong. Price controls on even basic items always result in reduced purchasing power for everyone. Production in any given product falls because profit margins for producers shrink, while the cost of goods to produce the price-protected product rises, due to increased demand price controls create. This creates the need for the government to subsidize the market of the price-controlled product and anyone with a brain knows the government has exactly ZERO excess money to throw towards subsidies. This results in increased taxes on the public, which reduces purchasing power relative to each person's income, which is the EXACT same outcome if price controls were never implemented.
@Jonas-qg6jw11 күн бұрын
@@davidh.3942 the government can absolutely subsidize.
@evaristegalois86003 жыл бұрын
The minimum price don’t harm producer if the buyer is the government...
@jerrythrash98792 жыл бұрын
It hurts the public because both the producer and the consumer (government) are unconstrained in a minimum price environment. Taxes have to rise to satisfy their profligate expenditure of public funds.
@Jonas-qg6jw2 жыл бұрын
The discussion of the minimum wages forgets something very important. He always mentions how minimum wages produce unemployment, totally forgetting that employment is worth shit if you can’t satisfy basic needs because your wage is so low. So minimum wages plus welfare for the unemployed seems to be the far better option for the worker.
@plasmorarca104415 күн бұрын
but the problem is that minimum wage needs to be reasonable to the rate of inflation so the employer can continue to pay for the workers. Furthermore a bolstered minimum wage that doesn’t keep up with inflation creates the problems with goods/services being more expensive/unattainable than they were when the minimum wage/ inflation was lower. Minimum wage shouldn’t benefit the worker or the employer it has to be equally beneficial.
@Jonas-qg6jw15 күн бұрын
@@plasmorarca1044 no it’s first of all to make sure that working people don’t live in dirt and that’s what it should do. It explicitly should benefit the worker. We wouldnt need a minimum wage if the market created the outcome that every worker gets enough wage to live.