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Comment by dmix | Hacker News Reader

There's not really much we can do about this. Artificial price ceilings were tried in Venezuela and it only contributed significantly to their massive food shortages they experienced.

Most notably it resulted in a big reduction in the variety of food available because while some of the biggest companies could survive with the new lower prices (and work with the gov directly to set those prices) the bulk of small/medium sized ones couldn't, often as other expenses eventually increased while prices didn't.

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I don't know. While price controls may not work in the long run, if businesses believe that there's a time-limited opportunity to raise consumer prices, you could try imposing time-limited controls until the opportunity is over. You might very well end up with lower consumer prices and thinner corporate margins, or at the very least, slow the rate at which the price increases occur.

Price controls are a pretty big deal though. Especially in a low margin industry you run the real risk of putting firms out of business and damaging supply. They're very dangerous when done wrong.

Most importantly you communicate to investors that your government does not respect the pricing mechanism of the market. That'll make investors worried about which other norms of economic stewardship your regime will violate. The uncertainty alone will be a heavy burden for the economy of a country that decides to impose arbitrary price ceilings on commodities.

There's not really much we can do about this.

Not directly or quickly, no. Fully agreed that price caps and other invasive measures are usually counterproductive.

I was only pointing out that in a market economy led by profit-seeking CEOs, pushing pricing up is expected. Listening to those clips, they sounds downright sociopathic, but it's just another Tuesday in America.

The best way to deal with this is likely ensuring workers are paid a fair living wage. And take the appropriate measures to curb the worst of the inflation.

One thing we can do is give the NLRB actual teeth to enforce its laws.

I agree that that would be a good thing, but it won't lower consumer prices.

It would create more competition, and put more money into people’s pockets.

Putting more money in people's pockets will not reduce inflation.

I don't see how it will create more competition.

Indeed, putting more money in people's pockets literally increases prices through higher demand.

Putting more money in people's pockets raises inflation, because they're willing to pay higher prices

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