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Why Price Controls Don't Work

Most of us feel the pain of inflation. Wanting to ease our pain, we are hopeful when a politician promises to limit the price greedy companies charge. This video will explain how businesses operate, why price controls cause more problems than they solve, what causes inflation, and how we can reduce inflation. The free market operates with the understanding that all people are driven by money concerns. Companies want to earn as much profit as possible, and consumers want to pay as little as possible. The government's role in this free market is that of a taxer and regulator. The one item that the government cannot regulate without negative consequences is price. When the government regulates price, scarcity and economic hardship are the result. This has been proven in the Soviet Union and in U.S. history whenever we've tried to limit prices. Kamala Harris has recently promised to limit prices to reduce inflation, which was mainly caused by the Biden/Harris administration over the past four years. However, this will not fix inflation because gouging is NOT the cause of inflation. In this video, you will see four actions that will reduce inflation. Since inflation is too much money chasing too few goods, the government can reduce the "too much money" part of this equation through monetary and fiscal policies. While this will work, it is painful for most. The best way to defeat inflation is to increase the supply portion of the supply and demand equation.