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economics Price Controls

Venezuela as a Map

The Fed is asking businesses to enact a hiring freeze to help fight inflation. The thought here is to cut off the demand for labor, which will prevent wages from increasing. This will in turn lower the amount of money available to chase goods, which will reduce demand and thereby control inflation. In other words, they want to make everyone poorer by keeping you from being able to get a job or run your business.

This is a common scenario for socialism/communism:

  • They enact policies of free stuff, which causes runaway inflation.
  • To combat that inflation, they begin wage and price controls.
  • This causes shortages of goods and labor.

How long will it be before we are eating our pets?

Inflation won’t be controlled by keeping people poor on purpose. It will be controlled by stopping leftist idiots in the government from doing things like mailing out checks so people can have free Internet.

2 replies on “Venezuela as a Map”

This would also lower productivity which would reduce the amount of goods being chased by too much money.

Labor productivity isn’t as big a factor in inflation as printing money, but it’s a factor.

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