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227 sats \ 13 replies \ @k00b 19 Aug \ on: Grocery Store Price Gouging? econ
In an Uber this morning, Trump was on the radio responding to Kamala's suggestion of price controls. Trump said "it doesn't work, it's never worked before." The Uber driver scoffed.
I think we, or at least just me, underestimate how little people care about what works and how it works. They just want it fixed and price controls make direct sense to them (while how disastrous they are is relatively abstract/indirect).
I spent my early childhood in a communist country. The only things you could walk into a store and buy were vinegar and mustard. Everything else had to be 'procured', by knowing people, putting your name on a waitlist, or waiting in line for days, with family members taking turns. That's what price controls lead to.
In 1989 that was dropped and suddenly everything become available.
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The evidence of how price controls work is not hard to find. But its impossible to learn when you don't think. That's where most people at. They are vessels that are poured into and emptied. In my experience very little contemplation occurs on these topics.
Its different when you live it though. Americans have had it very good. A very privileged life. Those that will not learn will have many hard lessons ahead of them.
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That's such a good point. We haven't experienced wide-spread price controls since the 70's, which is probably why most Boomers understand how bad they are.
Most Americans were not alive then and therefor have no first-hand experience of how disastrous that policy is.
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Once upon a time, I was naïve enough to believe the system could be fixed through the political process. (wE jUsT nEeD dIfFereNt GoVeRnMenT).
To my younger self, that meant volunteering to help advance the goals for the party I thought would "fix" things.
I got training. Official training. On communication tactics that were found to work better.
They could be summarized as "approach people assuming they have the intellect of a 6 year old".
When I got out in the field campaigning, it was TERRIFYING how accurate that was. Full grown adults, probably employed, in 1 on 1 situations, on major and important topics, were nearly brain dead or oblivious or both. Treating them like a 6 year old, and carrying on an effective, fact-based, conversation while treating them with respect, was extremely difficult because the intellect and understanding was so low.
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They feel like they make sense to that ignorant Uber driver, but just imagine if you had informed him that the majority of people (most likely) feel Ubers are too expensive, and what price controls would mean for him and his profession: he wouldn't make enough to continue driving in all likelihood. And if enough people like him quit, the availability of rides and quality would both degrade, further harming the demand for Ubers.
The only people who don't get 2nd order effects are the people incentivized not to get order effects, i.e. politicians and the voters that they've bribed. Some people have to touch the hot stove though, or preferably, we just empathize and educate them in terms they can understand.
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I like using the phrase "superficially plausible", in cases like this.
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Tell them to stop thinking about price and start thinking about quantity.
Problem is too much money chasing the same number of goods.
Will price controls increase the amount of goods companies are willing to produce?
If they say corporations are greedy, ask them if they suddenly became greedy in 2021. No? I wonder what changed in 2021 🤔
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Yup. Prices are just information about two quantities: how much people want, and how much there is to sell.
If you force people to trade at a certain price, you're barring the average consumer and the average buyer from ever trading at a price they would agree on. That means a decrease in revenue, and ultimately a decrease in jobs.
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Price control means shortages
Yep, you are dead right. This is also why Trump's tariffs work with so many people. Its not immediately obvious where the problem is. Same goes for the minimum wage and most regulations. There's a reason why we are in the position we are in right now. Demagoguery works really well when you have an uneducated populace. Especially when they don't realize how ignorant or propagandized they have become.
I realize that statements like this can seem arrogant but I say this coming from a place of realizing I WAS PROGRAMMED and believed many falsehoods. I was mal-educated and I'm still deprogramming myself.
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Does your driver oppose surge pricing?
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