I think that a lot of people can agree with me when I say that government price controlling is definitely a negative thing. When the government says that they are not controlling people but only the prices, they are lying. By controlling the prices, people’s lives get turned for the worse. By that I mean there is a lot of problems that come with price controlling.
Price controls are normally run by the government in the free market. They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline, and food.
One of the problems is that it will lead to lower supply. If firms get a lower price, there may be less incentive to supply the good, and the number of properties on the market declines. A maximum price will also lead to a shortage – where demand will exceed supply; this leads to waiting lists. In housing it could lead to a rise in homelessness. A maximum price can lead to the emergence of black markets as people try to overcome the shortage of the good and pay well above the market price.
Housing, for example, the government may set a maximum price for renting to keep housing affordable. However, a maximum price may reduce the supply of housing leading to homelessness. This kind of controls people in a sense where people are not able to choose something they would want or need, because of the pricing put on the housing just to support it.
Take football games as another example, tickets for football games are often set at a maximum price. While F.A. Cup final could sell many more tickets than 80,000. There is an advantage to this pricing and that is to keep football affordable for the average football supporter. It has been said that if prices were based on market forces, then only the wealthy ones who could afford tickets could go to games. The disadvantage is that it means the people who want to go to the game won’t be able to, because there is a shortage of tickets.
While researching for this topic I have found this interesting thought made by someone else and would like to share it. “Money makes the world go round” is a common phrase; but if it were to be true, it could be better worded as: “money controls the world”. Break this sentence further down and one would find that the core of this saying really means “money controls people”. I was quite shook 😳 while reading this, because the core of this phrase is accurate and to even come to this conclusion was quite clever.
In conclusion, many can agree that the government is lying when they say they are controlling the pricing, but not the people. There is a lot of obvious reasons why people won’t blindly believe the government. Oversupply and shortage of supply is one of those reasons for price controlling. The given price can determine if you have an oversupply of things or shortage of them. Some people can afford certain things while others can’t is also another obvious reason.
Thanks for reading this essay. I hope you liked it or learned something new from it. I’ll be posting more soon and have a great rest of day!