So I try to stay on top on economic news, and one thing that is confusing me is why government enforced price caps on products wouldn’t work? All I hear is about how strong the economy still is, record profits for corporations, and increasing wealth of the country’s most affluent people. Wouldn’t price caps cause: 1) more wealth for the average consumer 2) still profitable corporations (albeit not the record profits that they continue to reach) 3) more equitable wealth distribution?
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All the answers here already covers all the basis.
I would recommend to read the book “Forty Centuries of Wage and Price Controls: How Not to Fight Inflation”. Is a great book that list and explain how all the attempts to control inflation trough price controls have failed miserably trough time and in pretty much every culture that have existed on the planet
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