Inflation = Shortages: The Average Consumer Believes Higher Businesses Costs are a Myth, So Consumers will complain to the government to enact Price Controls = Shortages (Get Prepared) – February 6, 2022,
So consumer price inflation is surging and it’s not going to stop, what everyone is expecting is price controls and price controls equate to shortages. If you live in a city that imposed price controls on rentals, you’d notice that prices for rentals have actually gone up for people. Rent controls are price controls and rent controls protect current tenants, so the landlord is forced to make up their losses by charging future tenants more money.
That’s unfair you say? Well, then why doesn’t the government build more housing? The government doesn’t like to build housing because maintaining a government project is very expensive. Renters can be rather destructive, which is something governments figured out once they got into the rental housing business, and being a landlord isn’t as easy as it seems.
The same is true with operating any business, it looks easy from the outside looking in, but business owners are only in business to make a profit and if they can’t make a profit, there’s no reason to keep their doors open. So in the event, price controls are forced on businesses, a lot of businesses will close their doors. This in case you’re wondering is why Venezuela and Cuba are so poor and why they have hyper-inflation problems.
Because the average person is brainwashed, they imagine the stuff we consume comes from the government, nothing is further from the truth, the stuff we consume, find their way to the store shelves in spite of the government. If you’re one of those people who imagine capitalism is evil and pollutes the earth, well that should tell you that capitalism puts stuff on store shelves.
If Socialism, Communism, Big Government worked, humans would have abandoned capitalism long ago, the reality is that Left-Wing ideas lead to wars. Whether it’s the communists, the Democratic or National Socialists, left-wingers who want to control your OPTIONS, the modern left-wing environmental revolution is all about limiting your energy options.
When you limit people’s options, you create SHORTAGES! Consumer price inflation only exists when the government controls the money supply. Under a Gold Standard the problem is DEFLATION, central bankers as well all know hate deflation, which is why we’re on a Fiat monetary system. But you see money doesn’t incentivize people to work, nor doesn’t it fuel people to start businesses, it’s all about what the money can buy.
Cuban Pesos buy you nothing because there are shortages of things in Cuba, fire sales can’t happen in Cuba, the communist Cuban government has regulated private businesses out of business, but the Cuban government can print all the money it wants. In more developed nations, there’s a cost of doing business and if the consumers are unwilling or unable to pay for the higher costs of doing business, the business person will most likely close their doors.
Fewer businesses competing for your business equate to shortages, so beware of price controls!
Interesting times ahead!