On Price Controls

It’s been on the news lately that certain political candidates and groups want to institute price controls – especially within the grocery and food industries. This is problematic at best and has failed whenever it has been tried. The government is looking at price controls as a potential solution for rising food prices caused from inflation. Incredibly – they are trying to solve the very same inflation they caused.

A few thoughts on price controls:

• Shortages: When the government sets prices too low, producers might not make enough money to cover their costs. This can lead to them producing less, causing shortages of important items like bread or milk.
• Lower Quality: To keep up with lower prices, companies might cut corners and produce lower-quality goods. For example, if the government forces the price of bread to be very low, bakeries might use cheaper ingredients that don’t taste as good or aren’t as healthy.
• Black Markets: If people can’t find what they need at the controlled price, they might turn to illegal  or non-conventional markets where goods are sold at higher prices. This can lead to unsafe or unfair situations, like buying food that wasn’t properly stored or is past its expiration date.
• Less Incentive for Innovation: Companies might not invest in new technology or better products if they can’t make a profit. For example, farmers might not invest in better equipment or seeds if they can’t charge enough to cover these costs.
• Unintended Consequences: Price controls might hurt the very people they’re supposed to help. For example, if price controls lead to food shortages, families might end up spending more time and money trying to find basic groceries.

Example:
In Venezuela, the government tried to control the price of basic foods like flour and sugar. This led to severe shortages, with many people unable to find these essential items in stores. Instead, they had to buy them on the black market at much higher prices, or go without.

We have very little control over what government does or does not do. Put your efforts into what you can control:

• Move out of the cities.
• Move to low population density areas. Get away from people.
• Make yourself as self-reliant and self-sufficient as possible.
• Insulate yourself from the effects of government, society, and corporations.
• Live your life and enjoy the good times.

Take care all and keep preparing!

Rourke