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Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles? (lemmy.crimedad.work)

submitted 3 months ago by CrimeDad@lemmy.crimedad.work to c/economics@lemmy.ml

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cross-posted from: https://jorts.horse/users/fathermcgruder/statuses/113008342518705813

Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?

#economics #HarrisWalz #PriceControls #gouging

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[–] gaiussabinus@lemmy.world 2 points 3 months ago (4 children)

What your suggesting had been done, and it causes a price floor and the formation of a black market 100% of the time. This is not a solution.

[–] hotelbravo722 1 points 3 months ago (3 children)

Then perhaps reforming the commons? Agricultural land & surplus are owned in common by the people who live in the area. Government pays for the production of those food stuffs and only gets a nominal % tax on the surplus.

[–] gaiussabinus@lemmy.world -2 points 3 months ago (2 children)

The Soviets tried that and it is the root cause of some of the most serious famines ever seen. Not a good idea. Government, by its nature, is an inefficiency engine. You want the government in the picture as little as possible. This increases that and will cause more inequality not less.

[–] hotelbravo722 2 points 3 months ago

Who said Gov is an inefficiency engine? That sounds more like neo-liberal dogma then actual peer reviewed work.

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