Can govt.control the price rise ?

Question

Can govt.control the price rise ?

Answer 1

Government can hold , reduce, or increase the administered prices of certain commodities. But there is a price to pay ,and there is no free lunch.For example holding or decreasing the administered price of petroleum products  unrealistically low will result in budgetary imbalances and higher taxation.Government can also put price ceilings on certain commodities ,which may cause artificial scarcity and/or black marketing. It can also cause dumping by some countries.Government can also discourage exports through imposing floor prices, and making these commodities available for domestic consumption. However this may encourage smuggling.Government may impose restrictions on commodity speculation. this may cause private betting or kerb deals in commodity speculation.

Bottom line is that direct interventions by the government will have negative impacts, and these steps can at best be called blunt instruments with short term impact.

Hence price control has to be through a dynamic monetary policy which controls liquidity and impacts liquidity driven inflation.Supply side constraints leading to inflation also can be addressed through monetary policy.

Answer 2

No. All have liberty to sell at any price.

Answer 3

The short answer is..........It's ALWAYS about the $$$$$$$$$$$$$$$$$$$$$$$$$$$$!

Answer 4

yes but they dont bcoz of there profit in it

Answer 5

No Govt. Can control the Price Rise and Population Rise.

it is not in their hands.

Answer 6

Sure they can. All they have to do is  stop inflating the currency. As long as the Federal Reserve is allowed to create money that doesn't exist, then the value of our money will continually go down. So, yes, they can control the rising prices if they can control their greed and the need to buy votes by spending money and going into dept to do so.

Answer 7

Government control of prices always causes shortages.

Prices depend on the law of supply and demand. It is a natural law that cannot be changed.

Answer 8

Pres. Nixon tried it and people did not benefit at all. Supplies just drained up..   Would you sell a product to the lowest bidder?  Of course not.  Everyone wants top dollar for whatever it is

Answer 9

On oil this could be possible by elimination of oil based cars through a non proliferation treaty and dismantlement and replacing with new cars. The Government can set a limit on how much people can charge or build up Public Companies and not privatize things which were originally owned by The Public. This would mean The Government could set the price of thinngs to benefit citizens and not large Private Companies.

   With oil gone The Government could use public electricity companies to power cars and Public owned  stations which which power cars through electricity and charge through electric meters as opposed to gas pumps and gas meters.