Friday, January 21, 2022

The Case for Strategic Price Policies — James K. Galbraith

For four decades, mainstream economists have slammed the door on the idea that the US government might intervene to manage the prices of certain goods. But this reactionary mindset has no sound basis, and today’s inflationary episode should be an occasion for reconsidering the question....
Project Syndicate
The Case for Strategic Price Policies
James K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government at the Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin

1 comment:

NeilW said...

Price capping has definitely solved the fuel crisis in the UK.

I can't believe these economists. There are only really two ways to distribute supply - by price, or by quantity. Markets or rationing.

Where it is needed goods, like food and fuel, and you don't have sufficient supply or capacity to supply then markets won't work. At which point you have to ration until you can get supply sorted out.

It's not price capping we need. It's quantity capping.