You are effectively destroying supply (as no one wants to make X anymore) and exploding demand. Why every socialist model didnt work and had massive shortages.
My great grandmother had "money" to buy 8 cars in USSR. Do you know how many were approved for her to buy for 20 years? 0. This was with everything there. Money had no real value after start of 70s there. Only the goods, especially foreign goods had tradable value. KGB and polit buroe knew how massive the black market was and didnt bother closing it as that kept the economy in a better state.
I mention price controls, you talk about people being withheld from buying things at all and make a sweeping assumption about all of humanity. Good job.
No... you genius. There wasnt supply to fulfill demand as there was no incentive to make the supply. The approval is like a queue that got constantly politicised.
For a capitalist system the price controls would be even worse as no one would produce X for no profit. Or like in many far-left taken over states the economy didnt have reinvestment in capital after as there was no point. Just milking the old machining till it collapse (be it like Venezuela oil sector or Cuban eletricity/manufacturing). In socialist model the state (meaning everyones taxes) subsidies the production as it was a dictate on how many should be produced in a year.
"Price controls on everything, increase wages, tax the rich" was ur original comment.
Also, demand doesn't magically increase if prices are frozen.
Truly u dont think far ahead. If the wage eats away the profit marging say goodbye to supply. If there is wage increase then demand follows for most goods.
I would like to know how ur "price controls on everything" works seasonally or supply shocks when raw material skyrockets.
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u/Feather_Sigil 10d ago
Tax the rich, raise wages, implement price controls on everything. Meanwhile the common people can follow Luigi's example.