Inflation in the United States is very serious. Some analysts and economists predict that the United States will face further economic problems due to politicians and the Biden administration accusing companies. This view of rising inflation has led financial writers such as Isabella Weber to believe that price controls can reduce the burden on the US economy.
The Biden administration blames corporate greed and monopolistic behavior for inflation
The United States is dealing with the worst inflation in four decades, and the White House believes that stricter antitrust policies can solve this situation. In addition, some congressional leaders hope to pass proposals such as Senator Amy Klobuchar (D-Minn.) to stifle online e-commerce giants such as Amazon. U.S. Innovation and Online Competition Act. Senator Tom Cotton (R-Ark.) Platform Competition and Opportunity Act (PCOA) also aims to reform antitrust laws.
The White House blamed monopolistic behavior for the loss of American purchasing power.Last month, the White House Share data This claims that four corporate entities in the meat processing industry have been contributing to inflation. New York University Professor Marion Nestle Tell The New York Times stated in an interview that “their goal is to control the market so that they can control prices.” Despite the Biden administration’s comments, the North American Meat Institute Say these statements are wrong.
Economists believe that it is time to consider price control
This sparked a fierce debate, and recently financial writer Isabella Weber published an article Opinion editorial The Guardian said: “We have a powerful weapon to fight inflation: price control. It’s time for us to think about it.” Weber’s editorial said that during World War II, American economists “recommended strategic price control.” In essence, price control restricts free market activity because mandatory prices and restrictions are set and enforced by the government. This means that manufacturers have no say in the pricing of goods and services, and the government has complete control.
Weber’s idea is Not very popular Even Nobel Prize winners and economists Paul Krugman Blew up this concept.In a now deleted tweet, Krugman wrote“I’m not a free market fanatic. But this is really stupid.” However, the next day, Krugman apologized to Weber and said that he deleted the tweet.Krugman Say:
Sorry to delete my tweet about Isabella Weber about price control. There is no reason. It is always wrong to use this tone with anyone who argues in good faith, no matter how much you disagree-especially when there is so much malice.
The concept of price control was mocked, and Harvard economists insisted that “there is no reason to believe that monopoly power has increased.”
Another person laughed at the idea of price control and Say“We have changed from’inflation is temporary’ to’f***. We need to control prices within a quarter.” A Twitter account called Hazlitt said: “Anyone who claims to be an economist, Those who are also supporters of price control should be ridiculed, humiliated and understated.” TweetHost of the “Smart People Sh*t” podcast Dennis Porter Say:
Price control is what every government will do before the whole thing collapses.
Even Democratic economists and senior officials in the Obama administration, Larry Summers, Insisting that strengthening antitrust laws will not help the U.S. economy.in a Twitter stormSummers said: “The new claim that antitrust can fight inflation reflects’scientific denial.’ There are many areas, such as temporary inflation, where serious economists have differences. Antitrust as an anti-inflation strategy is not one of them. In the end, the Harvard economist emphasized that monopolistic behavior has not accelerated as much as inflation.
Summers wrote on Twitter: “In the past year, inflation has accelerated greatly and the view that monopoly power has increased is groundless.”
What do you think of rising inflation in the United States and the White House’s accusations of monopolistic behavior? What do you think about the concept of using price control? Please tell us your thoughts on this topic in the comments section below.
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