Tuesday, October 30, 2012

Price Ceilings, yo.


While there are both pros and cons to having price ceilings placed on certain goods, the cons tend to far outweigh the pros; I disagree with the use of price ceilings. Although making the prices of items more accessible to everyone is helpful to many people, it also causes problems such as lower quality goods, hoarding, and scarcity of the goods in question because of how much demand there is for them at these lower prices. As well as becoming more difficult to get, many people will begin selling the same goods in black markets for considerably higher prices because of how difficult it can become to access the goods at the new lower prices. While many people would think lowering the price of something everyone needs would be a beneficial and helpful thing, the contrary is actually more likely; it would cause more harm to the people and the economy than it would help.

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