tRump plan to bring down food cost

[citizen winston smith]

QUESTION: How are you going to bring down the cost of food and
groceries?
TRUMP: So we have to start always with energy. Always. I don't want
to be boring about it but there's no bigger subject. It covers
everything. If you make donuts, if you make cars, whatever you make,
energy's a big deal. And we're gonna get that it's my ambition to get
your energy bill within 12 months down 50 percent. If I can do that we've
done a hell of a job. 5-0. Not 15, 50. Interest rates are going to
follow.

Else:

https://www.sott.net/article/494870-Grocery-rationing-within-four-years

There is a lack of public comment and debate about Kamala Harris's call
for price controls on groceries and rents, the most stunning and
frightening policy proposal made in my lifetime.

Immediately, of course, people will reply that she is not for price
controls as such. It is only a limit on "gouging" (which she variously
calls "gauging") on grocery prices. As for rents, it's only for
larger-scale corporations with many units.

This is nonsense. If there really are national price-gouging police
running around, every single seller of groceries, from small convenience
stores to farmers' markets to chain stores, will be vulnerable. No one
wants the investigation so they will comply with de facto controls. No
one knows for sure what gouging is.

Don Boudreaux is correct:
"A government that threatens to punish merchants for selling at nominal
prices higher than deemed appropriate by government clearly intends to
control prices. It's no surprise, therefore, that economists routinely
analyze prohibitions against so-called 'price gouging' using exactly the
same tools they use to analyze other forms of price controls."
As for rental units, the only result will be fewer amenities, new
charges, new fees for what used to be free, less service, and a
dramatically reduced incentive to build new units. That will only lead
to a pretext for more subsidies, more public housing, and more
government provision generally. We have experience with that and it is
not good.

The next step is nationalizing housing and rationing of groceries
because there will be ever fewer available.

The more the betting odds favor Kamala, the stronger the incentive to
raise prices as high as possible now in anticipation of price controls
come next year. That will provide even more seeming evidence for the
need for more controls and a genuine crackdown.

Price controls lead to shortages of anything they touch, especially in
inflationary times. With the Federal Reserve seemingly on the verge of
cutting rates for no good reason - rates are very low in real terms by
any historical standard - we might see wave two of inflation later next
year.

[Baxter]

Post by citizen winston smith

QUESTION: How are you going to bring down the cost of food and
groceries?
TRUMP: So we have to start always with energy. Always. I don't want
to be boring about it but there's no bigger subject. It covers
everything. If you make donuts, if you make cars, whatever you make,
energy's a big deal. And we're gonna get that it's my ambition to get
your energy bill within 12 months down 50 percent. If I can do that
we've done a hell of a job. 5-0. Not 15, 50. Interest rates are going
to follow.

https://www.sott.net/article/494870-Grocery-rationing-within-four-years
There is a lack of public comment and debate about Kamala Harris's
call for price controls on groceries and rents, the most stunning and
frightening policy proposal made in my lifetime.

Note: this reply is not for spammy - it's for anyone who still reads
spammy's lies and drivel.

===
Really?!! Don't remember REPUBLICAN Nixon's price controls? Oh! You're
too young, and didn't study history.

[citizen winston smith]

Post by Baxter

Post by citizen winston smith

QUESTION: How are you going to bring down the cost of food and
groceries?
TRUMP: So we have to start always with energy. Always. I don't want
to be boring about it but there's no bigger subject. It covers
everything. If you make donuts, if you make cars, whatever you make,
energy's a big deal. And we're gonna get that it's my ambition to get
your energy bill within 12 months down 50 percent. If I can do that
we've done a hell of a job. 5-0. Not 15, 50. Interest rates are going
to follow.

https://www.sott.net/article/494870-Grocery-rationing-within-four-years
There is a lack of public comment and debate about Kamala Harris's
call for price controls on groceries and rents, the most stunning and
frightening policy proposal made in my lifetime.

Note: this reply is not for spammy - it's for anyone who still reads
spammy's lies and drivel.
===
Really?!! Don't remember REPUBLICAN Nixon's price controls? Oh! You're
too young, and didn't study history.

Price and wage controls always FAIL, ya dumb marxist fucklip.

https://en.wikipedia.org/wiki/Nixon_shock

Under the floating rate system, during the 1970s, the dollar plunged by
a third. Further, the Nixon shock unleashed enormous speculation against
the dollar. The German Mark appreciated significantly after it was
allowed to float in May 1971. It forced Japan's central bank to
intervene significantly in the foreign exchange market to prevent the
yen from increasing in value. Within two days August 16–17, 1971,
Japan's central bank had to buy $1.3 billion to support the dollar and
keep the yen at the old rate of ¥360 to the dollar. Japan's foreign
exchange reserves rapidly increased: $2.7 billion (30%) a week later and
$4 billion the following week. Still, this large-scale intervention by
Japan's central bank could not prevent the depreciation of US dollar
against the yen. France also was willing to allow the dollar to
depreciate against the franc, but not allow the franc to appreciate
against gold.


https://www.cato.org/commentary/remembering-nixons-wage-price-controls

Forty years ago this week, President Richard Nixon showed us just how
dangerous unchecked executive power can be to the free-enterprise system.

On Aug. 15, 1971, in a nationally televised address, Nixon announced, “I
am today ordering a freeze on all prices and wages throughout the United
States.”

After a 90-day freeze, increases would have to be approved by a “Pay
Board” and a “Price Commission,” with an eye toward eventually lifting
controls — conveniently, after the 1972 election.

There was no national emergency in the summer of ’71: unemployment stood
at 6 percent, inflation only a point higher than it is now. Yet, after
Nixon’s announcement, the markets rallied, the press swooned, and, even
though his speech pre-empted the popular Western Bonanza, the people
loved it, too — 75 percent backed the plan in polls.

As Nobel Prize-winning economist Milton Friedman correctly predicted,
however, Nixon’s gambit ended “in utter failure and the emergence into
the open of the suppressed inflation.” The people would pay the price —
but not until after he’d coasted to a landslide re-election in 1972 over
Democratic Sen. George McGovern.

By the time Nixon reimposed a temporary freeze in June 1973, Daniel
Yergin and Joseph Stanislaw explain in The Commanding Heights: The
Battle for the World Economy, it was obvious that price controls didn’t
work: “Ranchers stopped shipping their cattle to the market, farmers
drowned their chickens, and consumers emptied the shelves of supermarkets.”

Several lessons from Nixon’s folly remain highly relevant today.

First, it’s usually Congress that lays the foundation for an imperial
presidency with unconstitutional delegations of authority to the
executive branch. The Economic Stabilization Act of 1970 gave Nixon
legislative cover for his actions.

The act was “a political dare,” according to top Nixon official George
Shultz — the Democrats thought Nixon wouldn’t use the powers they’d
granted him, but he called their bluff.

Second, the damage presidents do with economic powers they shouldn’t
have can take years to repair. Price hikes from the 1973 Arab oil
embargo made it politically difficult to unwind controls on gasoline,
which led to the gas lines of the late 1970s.

Third, the episode shows the enduring relevance of cartoonist Walt
Kelly’s Pogo Principle: “We have met the enemy and he is us.” As noted,
the freeze was overwhelmingly popular. “Bold” presidential action on the
economy often is, even when “just stand there — don’t do something!”
would be wiser counsel.