this post was submitted on 10 Aug 2023
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Dont. Here in Hungary the commie ruling party (fidesz) capped some food prices, which lead to world recorder food inflation (47% measured), and top 3 overall inflation (36% measured). A lot of food products are 100-300% more expensive, also i cant say any product (not just food) that isnt became at least 40% more expensive. When caps lifted, there was a smaller price drop.
They also capped the fuel prices, then when they revoked the cap, the fuel became one of the most expensive from the surrounding countries.
Communist methods cause more problems than solve
Fidesz are now commies? Yeah sure.
They always were, orban was a secretary of the communist youth organization (KISZ), and most of his party members had high level functions in KISZ and the state communist party (MSZMP). They currently also act like that, with some fascist spicing on the surface.
Sure, anyone who had political power back then was "communist". But is his party communist? What communist policies do they want?
They are commies, not communists. These are not the same. Communists actually beliving in something, commies arent. These are commie style things: -govermental prices -govermental success propaganda (picking some real, but mostly fake stats, and cheering these up, while hiding the not so good statistics, and saying those are fake, made by western subversion, telling everything good is made by them and the supreme leader, everything thats not good is done by western subversion) -governmental demonizing propaganda (actually same as in full commie times, like "declining decadent west, but the mighty east", who tells something against their myths is a western spy, everyone is weak and unsuitable who isn't the,, "fight" "war" against everybody who is not them -govermental pressure to leave, or give up to them everything that isn't controlled by the party -fidesz (orban's party) voted against revealing communist agent files, 23 times, which means they are anti-communist only in words, but actually they are in these files as agents. Probably this how putin is blackmailing orban, as they have a copy of every document from the hungarian goverment from 1945-1989, and maybe more. -they using the same slogans, and passwords like the commies did -they act very similarly as their predecessors in rákosi, and kádár system (the two eras, and dictators of the commie ruling) did
Yea we have a food inflation pretty close to those measured numbers though in reality its a lot higher and that's without any caps. Also how could a food price cap cause inflation in food prices? That's literally the thing you are capping.
The things that are capped no longer produce (as much) profit, so food suppliers move to items that do bring in profit. Uncapped goods are now more desirable, and the suppliers increase prices to try to make up for the shortfall caused by price controls, making uncapped items even more expensive.
Government intervention like price controls always makes things more expensive, it's just a question of where that expense is spread to.
The government capped the price of electricity here a short while ago and that lowered the price of power massively.
Seems the solution would be to cap the price of all food then.
No, it isnt lowered the price, but you will pay for it elsewhere, indirectly, same like we are in hungary (that also caused rise in inflation). Communism not worked, and never will
Yea, price capping is as much communism as having public healthcare and when the price of electricity was capped it lowered the prices massively.
What was going on was the local power companies made deals with other countries and basically acted as middle men for reselling that power for a massive markup. Our government made a mandatory power plan that forces power companies to produce electricity locally for local supply at a fixed price and that pretty much fixed that. Those companies couldn't sell power at a massive markup anymore because everyone would just switch to the government power plan then.
No, the the prices don't get lowered on capping them, just you pay it from elsewhere. For example in hungary the commie orban capped the electricity and and natural gas prices, so the people pay less on the bills they get (well, not always since they restricted the "discount" only to private person users, and with limit, if someone out of these, they pay much more than the actual real international market price), but they pay of the real, actual price from their tax (in hungary every taxpayer pays 17000 hungarian forint extra over the actual natural gas bills, just they dont see it, as its taken from the usual tax). So the dumb people just seeing the lower price on the bill they actually get, but not the tax money that is used to pay their "discounts". Also, as the companies getting the electricity, and natural gas on "govermental market price", which is 2x more than "discounted" price in electricity, and 7x more in natural gas (about 4x more than the real international market price), which causes prices going up in restaurants, groceries, every commodities that are made, or processed by local companies, which causing the skyhigh inflation. Its just simple common sense, and the economic fundamentals, but a lot of hungarian people lack of these, and not just hungarians :(
Who? How could cause? In EU the second highest inflation is in slovakia (first is hungary), which is the half of the hungarian inflation. The difference is few hundred kms, and that in slovakia they dont have price capping commies like orban, and his comrades. And yes, here in hungary the real inflation is much more higher than the "measured" (ordered).