Logistics - Something grown somewhere sent to the other side of the world to be packaged then back to the other side of the world seems like a great way to bring cost down?
Discussion
Yeah. We’re also not talking about packaged foods. Simply raw commodities, generally grown domestically.
"USA" beef coming from other countries
Sure that has a negative effect on price, local will always be cheaper. But that wasn’t the point originally made by sunshine, that “some price controls are good”. I think he’s trying to make the argument that if we grow locally and supply the demand it will lead to lower prices. But that doesn’t happen if goods are priced lower than production costs, nobody will grow food just to sell it for a loss, locally or domestically
Again, you need to learn about how food is produced in the US.
We’re already doing all of the things you’re discussing. Our distribution system is simply shite.
This whole thing was started by you saying price controls can work. Price controls means “govt now mandates price of bread is now $1 for a loaf” just as an example.
There’s not a single example of a govt controlling price that didn’t lead to shortage.
Healthcare, food supply, concerts, what ever commodity you want the laws of economics will follow.
No need to argue with commies
That’s the end of my Econ lesson for today. Unfortunately think it’s not sticking
Who is going to produce things without a reasonable profit margin?
NOT ONE PERSON will ever do that
People will do it with a gun to their head.. which is why this kind of thought process is extremely dangerous. You get to a point where people don’t want to work because there’s no point so the government needs to force labor on to you. Happened in China, Soviet Union, all the way back to Mesopotamia this shit has been happening and people like sunshine who don’t study history keeps repeating it
“Let’s produce more than demand calls for, that will definitely keep us in business!” Said the failed business owner
Or those with subsidies that then get paid to dump milk on fields lol fucking fiat
A business that is not profitable will soon be departed from its capital which will find itself in the hands of someone who is better suited to use that capital. Simple as that, in a free market anyway
Exactly that’s just another type of price control that leads to surplus
He’s arguing from a Fiat mindset. Read Jeff Booth, The Price of Tomorrow.
Fiat ruins everything and creates thinking & arguments that only seem logical because the world we all grew up in has been so fucking broken by bad money.
Fix the money, fix the world is the truth & then things become naturally deflationary, without the need for any human “price controls” intervention.
I wasn’t saying logistics bring prices down if anything I was arguing the opposite, that you can’t control pricing to a certain arbitrary low price, as there are costs like logistics that can fluctuate. If the price of the good is too low to make it economically infeasible then supply won’t chase it and you’ll be led to shortage. Why would anyone ship a product to lose money? They’ll just supply a market with that good that doesn’t have an unrealistically low price