Why Price Controls Are A Disaster

Why are price controls a disaster, and why are so many politicians pushing for price controls today?
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Host: / nickfreitasva

[@user-ze3sg6ix1u]

Economic ignorance is the single greatest threat to our society. Economics is the most important field of study yet no one understands it

[@R_Caine]

Just according to plan.

[@alexanderjaruk]

ESPECIALY Economists: "If you believe that infinite growth is possible in a closed system with finite resources you are either insane, or an economist." "Economics" majors are the ones that know the LEAST about how the economy actually runs; they know a lot about money, but nothing about the ECONOMY that's not pure theory; because "the economy" is too big and variable a data-set to study scientifically, too many factors contributing to every outcome for anyone to say for sure which had the most impact, none of which are entirely repeatable.

[@user-ze3sg6ix1u]

@@alexanderjaruk Yup I agree, they get it in their head that they can control the outcomes. The socialist economists are the worst. Although ive read studies that show economic majors actually support socialism the least. Whereas humanities support it the most (unsurprising). I don't get what possesses people to have this authoritarian mindset where they believe they can determine what everyone needs. And as long as they use "compassion" as an excuse it's acceptable

[@RodMartinJr]

I'd say it's definitely ONE, but not "THE." Perhaps the more fundamental threat is *_EGO_* which leads to the Toxic Certainty which blinds a person to all the *_evidence_* which would otherwise prove them wrong. This affects not only economics, but education, policy decisions, military actions, corporate behavior, religious thinking, and much, much more. 😎♥✝🇺🇸💯 REFERENCES: *_"Overview of America,"_* JBS video [the real Left-Right paradigm] *_"Myths vs. Facts,"_* JBS video series [how we got the Deep State and a crazy government] *_Intellectuals and Society,_* 2nd ed., by Thomas Sowell *_A Conflict of Visions,_* by Thomas Sowell *_Dumb Genius: How intelligence is sometimes its own worst enemy_* (hardcover, paperback, ebook)

[@user-ze3sg6ix1u]

@@RodMartinJr wow thank you for this. I definitely agree.

[@spencerock2187]

We are definitely not more informed or economically savvy....

[@russianbot4418]

Well, right side of the populace clearly is.

[@Nyet-Zdyes]

They refuse to learn from history... It sounds good... They are so full of hubris that they think that, somehow, *they* can get it right, when no one else has succeeded for anything longer than the short-term.

[@damonf6564]

Modernity (the idea that the present is more.. anything positive than the past) is pure myth. We may understand certain things differently than the past, but it doesn't mean that that understanding puts us as more advanced than the past.

[@dylaninnes8541]

You could also cite meat prices under Truman administration

[@abcdefghij337]

Chronochauvenism: the idea and attitude that Now is better than Then simply because we live in the Now and not the Then. We’re smarter now, better now, more moral and ethical now, simply because now is the time we live in.

[@skaruts]

Minimum wage is price fixing. Unfortunately it doesn't cause enough shortages and wastefulness quick enough for people to realize that it's terrible.

[@nonyadamnbusiness9887]

It's just not as in-your-face as empty shelves.

[@TimBinns68]

We used to eggs at a farmers market a where someone else who sold eggs wanted to set the price of eggs to the same price for all venders. We refused because we were selling our eggs for $1 less than her. We always knew we would sell out of eggs and after our eggs were gone, she would usually sell out also. We also knew that some people that bought our wouldn't buy them at $1 more per dozen. Fixing prices wouldn't have sold more eggs but would have sold less.

[@russianbot4418]

I see this all the time when selling things online. Everyone wants the same as the person asking the most. I sell my stuff for less because it actually moves MY products.

[@nunyabidness3075]

It’s really interesting how the farmer’s markets turn into Orwell’s Animal Farm all the time. The public has no idea what’s going on behind the scenes. One of our favorite sellers quit the close by market over the price fixing and other politics being used to rig things in favor of some vendors over others. And, in our case, it’s being done on public property. It’s shameful.

[@christiansimbarashe]

another 21st century example I grew up in - Zimbabwe

[@joaopedrobaggio4475]

Sorry for you, where are you leaving now?

[@jamesfowley4114]

I hope you're in a better place now.

[@zarach9459]

Well friend, in Venezuela we had 1,800,000% inflation in 2018, ten minimum wage increases that year, currently the minimum wage is $3.5 per month.

[@TheMormonSorceress]

I heard about what happened there, they wouldn't stop printing money and it resulted in Hyperinflation.

[@joaopedrobaggio4475]

@@TheMormonSorceress this is the socialism.

[@Lahzarus74t]

Back in the 80's, when I was a kid, the government in Brazil adopted a price control policy... It was a disaster! Supermarket shelves started to go empty while prices skyrocketed. Fortunately this crap didn't last long!

[@bwmacallister]

Wake up babe!... there's a new Why Minutes. 😁

[@rossspyke2362]

Love your videos. Short, to the point, and 100% accurate.

[@markdorn8873]

That was a timely Why Minute. Thank you for sharing!

[@Anti-CornLawLeague]

This is why the Federal Reserve needs to be abolished. It’s a price control on the interest rate.

[@chrisbrotherton]

I’ve never looked it that way. Interesting!

[@cpK054L]

That's antisemitic!!!!

[@LanceStoddard]

It's actually worse than price control. They force the price higher many times.

[@Nyet-Zdyes]

Price controls... just another "feel good" thing that leads to disaster. Yet another way to signal virtue while doing the opposite. We used to have a saying about where a road paved with good intentions could lead...

[@nadanalia3000]

“It is well to remember that continued government deficits cause inflation; inflation is used as an excuse for ineffective price controls; price controls lead to shortages; artificial shortages inevitably are used as an excuse to implement rationing.” - Ezra Taft Benson

[@user-unknownorknown]

Same in Romania during Ceauşescu.

[@aislemontecristo]

Here's one to mull over. When Carlos Salinas de Gortari became Mexican president he proposed a "Solidarity Pact"; which effectively froze all prices wholesale across the nation. The reason the country didn't collapse had more to do with the government already running most public services, but still... Want to look into it?

[@SethDaughters]

Ha! Bernie Sanders ad at the end for Kamala was funny

[@williambilyeu9801]

It was at the beginning for me. I skipped it as soon as I could. Let them waste their advertising money!🤔😊👍

[@russianbot4418]

I use @dgu@rd so I see nothing.

[@Mechdemon23]

Ublock Origin. Thank me later.

[@russianbot4418]

censored for pointing out what ad blockers work well.

[@Mechdemon23]

@@russianbot4418 shadowblocked; i still see my own comment.

[@sparklessconnectionselectrical]

I grew in on of the Soviet Socialist Worker Paradise satellite country... It is true.

[@jdemille79]

Worked well in the 70's here... oh wait, it didn't. It amazes me how many Americans do not understand basic economics and think all these 'good vibes' will work.

[@delivererx]

The average voter will never understand this. Not so long ago a guy from Italy, who's says he studied economics at some Italian uni, was arguing with me about why the government can't have price controls on property rental and sale.

[@marcusmoonstein242]

Fixing high prices with price controls is like fixing a heatwave by making a law that no thermometer can produce a reading higher than 70 degrees Fahrenheit.

[@marcelgrabowski5939]

Well said, this one.

[@glenndower2513]

as I once read "The black market is the free market re-asserting itself."

[@lberhold]

The best way to solve over inflation is to reduce spending. If the government took it's budget down to 1/3 its current spend, we certainly wouldn't have inflation.

[@TheJabberwokk]

I don't care how many experts with how many degrees say otherwise. No one is better at running your life than you. Centralized power will always fail.

[@lucagabrieleberuatto]

There is just a little thing I would add: actually, price control can be beneficial for some businesses, the big ones, which can survive the reduced profits from the mandatory reduced prices. So, in fact, price controls are, just as almost any other economic policy from the government, a way to advantage big businesses at the expense of small businesses: this, not "capitalism" like Marx said, creates a tendecy to monopoly and to bigger and bigger businesses

[@mikemcconeghy4658]

I was in Brazil in the mid 80s. They had a law about bread. It had to be sold at a certain price, and it had to be available. People would show up at the bakeries at certain times to pick up the bread fresh from the ovens.

[@Silverman96]

So true. Another good example of price control is 1970s America Gas Shortage. Also Rent Control is another thing that effect the cost of living in this country.

[@r.guerreiro140]

Maybe an important aspect wasn't mentioned: Markets are expressions of our human nature, and price control is a denial of it

[@johnguill6129]

Price controls from the government and "price gouging" by corporations have something in common. They always fail. Price controls failed when Nixon did it, too.

[@volrag]

I don't know if I'm just arrogant or just missing something obvious, but it seems like politicians are just magnitudes of stupidity below being able to solve our problems. It's like watching someone trying to solve a problem that requires a differential equation but they don't want to use calculus. Economies are made of systems, not variables. Peoples choices change.

[@stevenscott2136]

Not stupid -- indifferent and corrupt. Politicians don't WANT to solve problems, because problems are the only reason people tolerate politicians. The politician exists to PRETEND to be fixing problems, and must maintain a steady state of problems and alleged solutions in order to justify his pay.

[@poodlescone9700]

Supermarkets make between 1 and 3% profit margins. If the actual cost of goods in going up because the costs to produce and distribute the goods is going up 7%, then price controls will bankrupt businesses or they stop selling the price controlled goods.

[@AlexRussell-kd9pd]

Canada implemented price and wage "controls" in the mid 70's during a period of high inflation. Food and energy were exempt, and the main goal was to reign in high union raises in new collective agreements. It was a somewhat flexible system - no prices were just arbitrarily set, and companies were allowed to make a profit. Still, it didn't last long and pretty much everyone with a brain was against it.

[@nancywhitehead219]

So true 😢😢😢

[@jessiestandridge245]

Great information, thank you sir. I hope you and your family are doing well.

[@mikecanton9147]

Keep the videos coming, Nick. Great stuff!

[@puckrocker854]

I have a topic for another video: why Robert Reich is a complete buffoon.

[@iamdunat0s795]

Same is true for the similarly popular anti "price gouging" laws that kick in after natural disasters in many states.

[@joejohnson4183]

Instead of the government controlling the prices of food and gas how about removing the sales tax ?

[@armorbearer9702]

Nixon tried price controls. It did not end well.

[@Maniac3020]

When the voters want the impossible, the only politicians who can provide, are the liars. - Thomas Sowell.

[@davidanderson9103]

Here is a why: Why does is "protection from tyranny" rarely raised in conversations regarding the 2nd amendment and g*n control. The way I see it, that is the main reason for the 2A, and not hunting or self defense. The democide numbers in the last century is staggering.

[@chukwuedozienwokafor2685]

Informative and educative.

[@jimmysegal9515]

Since you asked for it, here is an example from Canada. We have milk control boards in every province. They do not put in any price controls. Instead, they assign quotas for each farm. These quotas are set based on keeping the milk industry solvent and prosperous. This restricts milk supply and keeps the prices high ensuring that farmers have a good income. This is all based on bitter experiences in the past when farmers were driven to bankruptcy as bottom prices spiralled downward due to cut throat competition, drove farmers out of business. When this led to shortages, the prices went sky high. Yes as consumers we pay more for our milk but I am quite happy about sharing my wealth with those who feed me. Besides it provides for a steady supply of this staple item. The only viable way to control prices is by ensuring a healthy market competition. Granting monopolies or allowing companies to gang up on consumers leads to disaster. This is not what is happening in the US. Corporations are allowed to amalgamate and the only beneficiaries are the corporations. Common people get screwed.

[@katydid2877]

You “pay more”? More than what? Is it raw milk? Do your stores also sell coconut and cashew milk?

[@robertf6523]

There's a rather interesting story pertaining to dairy and the US Gov.. the fat electrician did a video on it. In our case it was cheese the gov stepped into

[@Don_Beto_ptr]

It happened in Chile during Allende's time. Black market and endless queues to buy supplies and food

[@CodeRed7109]

its the same way with minimum wage...

[@GregoryBoyce-w3i]

Read the end of growth

[@Darkshadow10157]

Every voter in America needs to see this. In my opinion, this is the single biggest reason not to vote for Harris. Her other policies can be a matter of opinion, but her economic policy is objectively bad by any measure based on even an ounce of reality and economic understanding.

[@redparis9225]

Remember that someone running for president is currently pushing for this.

[@danielreschke2312]

Greed destroys economics by adding a huge greed tax on everything. Or extortion by law.

[@eliel14ful]

But Kamala Harris is going to stop the "price gouging" ohh how low has America fallen

[@JamesHolbrook-eh5sp]

Another big problem is that people often confuse Wants and Needs

[@jamesfowley4114]

They were a disaster last time. Why is the current crop of tyrants better?

[@mjgbabydragonlet]

So good!

[@Munce72]

Great work Nick! Scooby snacks for you. Praying for the USA and the entire World. My allegiance is to Liberty, and the Repubic.

[@Theggman83]

The government already does this. With milk, with meat... Do you realize how expensive Hamburg would be if the government wants paying subsidy to farmers? Why do you think the government started making "government cheese" out of all the milk they were buying?... This has been a thing for decades. This is why farmers are so poor and go out of business. Been watching it happen my whole life.

[@kartikchandrasekhar7393]

Hi Nick, I was wondering if you could talk about the cost of prescription drugs and insulin.

[@katydid2877]

How would price controls be implemented when we have dozens of choices for every item? If you say “bread” can only be $1.00 bread companies will all go out of business. But, maybe that’s the goal.

[@priestesslucy]

0:46 or floor... Like all the damn corn subsidies

[@BobHigley-ne3fk]

I’m curious, which would be easier to control prices in the economy or to predict the weather 30 days out I’m leaning more towards the weather prediction

[@zeluis9219]

Absolutely true! History confirms it all

[@RealityCheck6969]

If you control the wheat production than you can control the selling price. It's basically a government subsidy of bread. It doesn't work if the price of wheat is based by the free market.

[@TheSmark666]

Based and corporatist-pilled! Let the incorporated among us do as they please.

[@williamdufour4826]

Supply and demand.

[@LibertySuiyka-ph6om]

Interesting 🤔🤔

[@idontknowwhatahandleisohwell]

The liberal movement - classical liberal - is ultimately a free speech movement. Prices are speech.

[@thanksfernuthin]

Love these videos.

[@nonyadamnbusiness9887]

Maybe we should try price controls on groceries. I'm a direct to consumer market gardener.

[@Jlragent]

Why haven't you linked all your channels together. I was listening to MTA on Spotify. There was no link to this channel. I went on KZbin for the same episode, and again, there was no link anywhere. Not on the podcast, not in your community. I'm over here guessing the names.... The whine min The wine min The y min Finally I found you and I'm glad to be here.

[@RichardGeiszler]

The raw destructive power of hubris. The hubris inherent in Socialism, Communism, Progressivism, the name matters not, leads to human suffering.

[@hhartness1115]

Nick for president

[@combatkool-aid9495]

The fact that we're even having this conversation proves cronie capitalism failed.

[@jongreen9171]

Why was a unified Germany considered a threat in 1870-1, when the Holy Roman Empire and Confederation of the Rhine, which both preceded it, were not?

[@youtubesucks1499]

Breadlines

[@McMillanScottish]

"Do you have a 'why' you'd like us to answer?" That sounds kind of awkward. I think it should be, "Do you have a 'why' you'd like us to 'because'?"

[@renee-claudetanguay9738]

Im afraid Japan is heading that way 😢

[@valensigmund1957]

History repeat itself.

[@Elsneakakaze]

If it costs 3$ to make bread and i have to sell it for 2.99$, then im guna make pasta and cakes instead. when they price cap those too im selling the bakery and moving to el salvador.

[@--harry_]

It happened here is the USA in 1946. Beef prices were high in an election year, so Truman fixed the prices. Beef shortages soon came... The Dems lost in the election.

[@jackbaribeau8370]

Yall j forget about The Defense Production Act of 1950?

[@zarach9459]

The only way that price control functions is with a bureaucracy of Angels, by definition Angels are pure and perfect beings blessed by the grace of God and until now I did not know that Kamala was promoted to God.

[@mrparkerdan]

Kamala Harris: but THIS time, it will work!

[@VisageRob]

And people will still vote for Kamala Harris. If she wins and all goes to hell they will still blame Trump.

[@joeylitz7444]

⚔️🛡✝️

[@ivansherbinin]

let's agree to disagree. US internet is shit. Internet in Russia is better than internet in US. Even though they buy equipment and licensing from U.S. (were buying and not it's even more expensive for them). So, I guess there are other factors in forming prices other than demand and supply. prices for basic necessities should be regulated. Bread, diary, housing. M.b. not in a strict number but in a margin you are allowed to have. When we have cheap shitty alternatives - you can make uncontrolled profits from middle/upper class products all you want. and yes. Regulating pay based on performance only magically work at taxis and repair. Somehow we haven't run out of taxis and people to paint walls. But every other aspect just can't be regulated. We can't set what is the maximum price someone can rent a basic apartment. Cause, again, this only works for taxis. and double yes - I am not saying regulating prices just works. Same as not regulating them. As everything in this life it takes skill, understanding and balance. Basic necessities should be regulated. To create a basis for the rest to be competitive and free market.

[@ctreid87]

Beard day!

[@fresholiveoil6490]

What's with the Nordic "socialist utopias?" Are they actually all that good? Are they really socialist? Or is it all hype and no reality?

[@RussellNelson]

Not socialist. Capitalist with high social spending.

[@stevenscott2136]

Small nation, small population, high degree of social homogeneity. Totally different from the US, which is a huge, diverse empire filled with multiple types and classes of people who all hate each other, and see EVERY policy as a zero-sum game where someone has to win and someone has to lose.

[@fresholiveoil6490]

​@@stevenscott2136true that.

[@katydid2877]

@@stevenscott2136 Basically, yes👍

[@Fahim-ud2dm]

False, in Arab countries bread price is fixed.

[@IAm-NotHear]

Meathead is back!

[@alexanderjaruk]

You've missed a major issue with your theory less than a minute into the video: the Koku. They didn't fix the price of rice; they BACKED THE CURRENCY WITH IT; because you can't eat money, but you CAN eat rice. So, if 1 bushel of rice = 1 Koku; and 1 Koku = 1 bushel of rice when turned-in at any government run Granary then the Koku has an inherent value, because for 1 Koku, you get FOOD, guaranteed, and the only thing more valuable than food to humans, is clean water. Which is also the reason that the universe of Fallout has everyone buying-and-selling with "Caps"; because they were backed by clean water, originally. (One of several reasons, the lore behind the use of "Caps" is long-and-involved.) So if you don't "price fix" with bread, but rather a fully-shelf-stable "bread" equivalent stored by the government is the backing of the currency (say, 5$ = 1 Loaf of "Bread"), and the only way they can add more money to circulation is additional loaves of "Bread" and when any loaves are missing money is equally required to be REMOVED from circulation, until more "Bread" is available as backing; the economy becomes MORE stable, not less, as one loaf of this "Bread" turns into a fixed judge of effort expended to produce a product that you can fact-check all other prices against, both for the government and the consumer.

[@Nyet-Zdyes]

No, because if 5$/loaf is a good price, everyone will start growing wheat and making bread... which will have the *exact* same effect as the government printing money like it grows on trees... or in fields, in this case. Conversely, if 5$/loaf is a *low* price, then no one will want to grow wheat or make bread.

[@alexanderjaruk]

@@Nyet-Zdyes Ah-ah-ah, only GOVERNMENT loaves of the specific shelf-stable "Bread" that are stored in government facilities are backing for the currency, you can charge as much as you want to for any other kind of Bread, but only the government Bread is 1 = 1 to a 5$ note. Similarly, are you aware that more of many western states are more federal land than they are owned by ordinary people...? Plenty of space to grow all the wheat for more of those loaves of the shelf-stable "Bread" than they can possibly add to the economy safely, but they wouldn't, because we have a federal reserve for that exact same reason. It's just like growing the cotton they make the bills out of, entirely handled IN-HOUSE by the USDA, not "on the economy".

[@alexanderjaruk]

Ahh yes that old chestnut. Only one issue with it: Bread in general is not backing up the currency, but rather only the very specific shelf stable "Bread" held in the government warehouses: one cannot print money because one baked a baguette 🥖, but you CAN bake it and then SELL it for money, however, no one will pay you more than 5$ for it unless it has specific advantage in terms of nutrition, flavor, or other factors over-and-above that of the same thing from the government warehouses. (Which it is overwhelmingly likely to do, since I can't imagine that the shell stable Bread will be particularly good tasting, but...) Additionally, the government of the United States of America already has an entire government department which runs thousands of acres of farmland for the government to experiment with making superior strains of food crops, so they don't even need to purchase wheat "on the economy" to make this "Bread" to back up the currency, much like the cotton used for the bills themselves, it can be provided entirely "In House".

[@action2news256]

Fixed capitalism Fixed price gouging Fixed stock market Fight the system Demand price controls❤❤❤

[@mchume65]

I guess you learned nothing from this video. Maybe you're just being sarcastic.

[@sejones97]

Capitalism isn't the problem... Corruption is, gov. And corp.. Any system fails because of this.. Plus their own inherent flaws.

[@michaelbazzell6327]

Wow, The government causes inflation and you are telling the government to cause more inflation. Great Job Skippy.

[@makhnothecossack4948]

​@@sejones97Capitalism especially as it encourages greed and short-term solutions.

[@Peacefulnessxxx]

Consider one on MMT