Why can't we ban inflation?

Question

Just make it illegal to raise prices. Then we will all be at peace finally.

MrOracle · Accepted Answer

Because, unfortunately, we have government, and governments have learned that they can buy votes and enrich themselves and their families by changing monetary policies.

Look at my state of California. Our idiot Governor - the guy who was formerly the mayor of San Francisco and who put in place the policies that led to San Francisco becoming a zombie apocalypse land - championed raiding the minimum wage to $20 starting in April. The result? Thousands upon thousands of people are being let go, and will be replaced by automation or will have their jobs outsourced to someone who will earn less and have fewer benefits.

At the same time, everyone who employs minimum-wage workers will have to raise prices, so that if everyone else's wages don't also rise (and, of course, they won't), it makes things more expensive for everyone.

There's a big portion of government who does not understand how money works, but there's also a portion who very much DOES understand how money works, and exploits that to benefit themselves. Let's take our current president Joe Biden. Joe has never had a conventional job - he's been in Congress for nearly half a century. Yet, somehow, he's worth $300,000,000 personally, and his family (his brother especially) is worth far more. How is that possible? The simple answer is corruption. And make no mistake, it happens on both sides of the aisle (though, for sure, a lot more on one side than the other).

The government "earns" very little money on its own. Nearly every time the government spends money on ANYTHING, it is reaching into YOUR pocket (and your parents', and your neighbors', and your friends' pockets) to pay for it. Even worse, the government regularly takes out huge loans IN YOUR NAME to borrow money to spend on things - including crazy, stupid things. And YOU have the burden of paying back those loans - WITH INTEREST.

You know how Biden recently "forgave" hundreds of billions in student loan debt? That debt was simply transferred from the people who signed for those loans and directly benefitted from them, to the entire pool of taxpayers - many of whom had already paid back their own college loans through work and sacrifice.

That's why we have inflation.

rigmarole · Accepted Answer

You have a fiat currency controlled by central bankers and governments that have a hand in a centrally planned economy (i. e. socialism). When the central banks increase the money supply and the central governments fails to create growth via poorly planned government spending you get inflation. It's basic Quantity Theory of Money... If you don't like inflation then you need to kick socialism to the curb, remove the central bankers and peg your currency to a finite commodity like gold or silver, and eliminate government spending. When governments pick the winners and losers in an economy rather than the market, you waste resources and growth doesn't materialize. When central bankers have a license to print, they will always print to pad the pockets of the aristocracy that are part of the club (i. e. communist party).

Anonymous · Accepted Answer

because it doesn't work like that unfortunately. you'd think that would be a solution but it actually makes no sense. supply and demand also increase inflation. if there is like only 100,000 of say, bread, in the world. and everyone wants a loaf. that price will increase to someone who can actually afford it because there is not much to go around. probably a bad analogy, but a reason why inflation HAS to be in this world we live in. plus, we have a lot of debt in the world lol

Fireguy17 · Answer

it was tried many years ago, how could anyone regulate or keep tabs on every business in the US?
It didn't work then, it won't work now.
The last time was during the Nixon presidency.
They also had catchy slogans and buttons that did absolutely nothing, they were WIN buttons. Whip Inflation Now.
Ya, that worked so well.
Inflation comes and goes, and it seems the more the government try to "fix" it, the worse it gets.
It like years before will run its course and things will even back out once again.

NaultD · Answer

While out of control inflation is bad. Any amount of stagnation of economy is terrible. Like zero traction on tires terrible. People put two and two together and realized this is all made up bullshit like majority of crypto currency deaths and nft values. If there is no life to it, it dies. Same with any stock.

Even gold has a very small controlled inflation by basically digging it up. You can almost think of it like a heart beat.

AviatorTom · Answer

That's called price control, and it doesn't work. If prices don't increase, employers can't pay their workers more money, which means everyone is stuck... economically. Some inflation is good. The problem is when it gets out of control, like it has in Argentina, with 150% inflation, which causes prices to spiral completely out of control.

KostasKouvalis · Answer

You know, I was thinking the same thing and just make big companies take a loss. Or subsidize them with government money like they do in Arab Gulf countries. So it's not like it's something that can't be done. I've always wondered what's preventing individual gas stations from charging the rates they want.

Joshydavid25 · Answer

Unfortunately we can't.. Inflation is a result of more money than there are resources lowering the value of the currency, and raising the prices of goods and services.. Inflation is a result of government intervention..

Levin · Answer

Well, say what you want about bitcoin, one advantage of it is there can only be about 21 million coins. My hard earned money won't be devalued by the POS's that rule us, and the spineless population who look up to them for direction.

Avicenna · Answer

I assume you're trolling (Zimbabwe tried to do that at the behest of Mad Bob Mugabe and it didn't work).

Try it and you will have huge shortages in your economy, a huge credit crunch and lots of bankruptcies, as well as capital flight.

exitseven · Answer

Back in the 70s there was inflation as bad as we have today. President Carter implemented a 90 day freeze on prices. It seemed like a good idea but the government was selective about who had to obey and eventually it fell apart.

Astarlessnightsky · Answer

Because Governments rely on inflation to reduce their debts.

NamerOfStars · Answer

M. Colbert? When did YOU join GAG?  And I think you need to update your age; you're off by a couple of centuries...

strateguy632 · Answer

only for basic products like milk or bread limit price. anything else should be dependent on competition

Anonymous · Answer

I'm sure if it were simple as that we would have banned other pesky things such as world hunger and poverty as well.

Anonymous · Answer

We can Just cull the overpopulation say 5 billion globally and return to silver currency

Drumlin2001 · Answer

So you never want a pay rise?

Anonymous · Answer

How would that work exactly?

FenixG45 · Answer

HAHAHA!!!😂🤣🤪 Tell me you're NOT an economist!

Pterodon · Answer

Get rid of Biden and prices will go down

askthis56 · Answer

Supppose doesn't work like that

gorydetails · Answer

Brilliant plan!

Why can't we ban inflation?

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Y'all know inflation can't be zero right?

Why can't we ban inflation?

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Y'all know inflation can't be zero right?

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