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Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles? (lemmy.crimedad.work)

submitted 2 months ago by CrimeDad@lemmy.crimedad.work to c/economics@lemmy.ml

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cross-posted from: https://jorts.horse/users/fathermcgruder/statuses/113008342518705813

Instead of price controls to prevent gouging, why doesn't the government build up reserves and stockpiles?

#economics #HarrisWalz #PriceControls #gouging

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[–] gaiussabinus@lemmy.world 2 points 2 months ago (8 children)

So you spend taxes for product at market rate and then depress the price using your money? The government doesn't make anything so it would need to acquire the materials with some kind of cost that will always come from the tax base 100% of the time.

[–] hotelbravo722@slrpnk.net 1 points 2 months ago

I agree the money is going to come from the monetary supply and government acting as buyer and distributor of goods would be incredibly problematic. A subsidy of some kind for domestic production + placing a max profit markup IMO would be a more effective method.

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