08 June 2011

Just Say No

To Price Control

Mostly Free Markets produce the lowest economic price fair to all.

Producers, transporters, sellers, and customers all pay and receive fair compensation when slightly managed market forces establish the price.

When non-purchasers seek to establish the price, they do not have a clue about the value to those who need or want a product or service. Everything they think or believe is just hearsay. They usually don’t even know if the product is in shortage or surplus, or what the production or delivery costs are; so they have no idea what the true market price is.

They are motivated to keep the price artificially low to curry favor with the voting public. With no profit opportunity, suppliers, distributors and sellers have no reason to supply more products; so, scarcities drive underground resale markets that will demand and get much higher than open market prices.

Government bureaucrats, Price Boards, Commissions, all use false indications and are completely ignorant of the fair price normally established through billions of individual transactions that reflect the contrast between supply, demand and costs, and customers’ wishes and perceived values.

All other methods of price fixing are false, and are illegal unless the government does it.

Some how the government is exempt from “price fixing” laws, imagine that. It is too bad the volume and the value of government services aren’t set by market forces.

Over-charging businesses are devastated by every failed sale because of price. A reputation of price gouging puts enterprises out of business very quickly.

Shortages of needed products forces users to offer more money. A slightly higher price initiates increased production and distribution, and if not satisfied, many more competitors, with competitive pressure and surpluses eventually driving prices lower.

If you want lower prices, many things can be done in the market place to drive prices down. Government price fixing isn’t one of them.

Here are some examples:

1. Buy cheaper stuff.

2. Buy less popular stuff, or wait awhile until it’s less popular.

3. Reduce taxes. All products, including foods and most services, have as much as 50% taxes and costs of regulation hidden in the price.

4. Stop taxing businesses and stop voting for those who want to, it’s stupid. Businesses don’t pay taxes, customers do.

5. Shop around, encourage competitors.

6. Discourage Unions. They’ve never made anything better, faster or cheaper.

7. Encourage people to start their own businesses. Make it easy.

8. Encourage businesses to come to your community with tax breaks and incentives. They create jobs for people.  People that do pay taxes.

9. Encourage more supply. Make increased supply easier. You want cheaper medical care, increase competition; not increase taxes and regulation. Encourage hospital, clinic and staff expansions.

10. Get rid of unnecessary permits and licenses.

11. Stop corruption and crime, it costs us all a lot of money.

12. Stop mandating employee benefits, ridiculous work rules, and childish so called “Safety” regulations. These things when needed will be offered by smart competitors without government interference, if customers are willing to pay for them. If customers won’t help pay for them, then they are not needed.

13. Stop minimum wages that rob young people and those with limited skills by keeping them out of starting jobs

Get big government out of our businesses, and out of the personal choices of legal, law abiding, hard working, taxpaying citizens; if you not working, not obeying our laws, not here legally, and living off corruption and government entitlements for decades, you are not entitled to any say just because you are here and sucking air.

Put some in, before you take any out, or get out; move to some failing socialist or communist country.

You are making our lives worse.

2 comments:

  1. Ben Franklin has always been a hero for me! Great blog, you got a new follower

    ReplyDelete
  2. Thanks Dustin, you might enjoy my little essay on Kit Carson too. February 2010

    ReplyDelete