Please help? Detailed anwser or as much as possible information!!Why does the governement control the prices of some products?
Vote buying and power retention.
Let's say you are a Representative from a state that has a lot of corn farmers. You promise them to do everything you can to make sure they get the best price for their corn possible. So you work to make sure the gov't controls corn prices and continues to do so. The same goes for Reps from dairy product states, peanut prod. states, tobacco states, you get the idea.
And all of this is done at the expense of taxpayers. Which is one of the biggest reasons for the FairTax.Why does the governement control the prices of some products?
In my country, importers were profiteering by raising prices of essential goods like rice and sugar decades ago, after WW2.
The government stepped in as ';middleman';, imported rice and sugar, and sold them in small co-op shops throughout the country and kept prices down.
By popular demand, more items were added. Today, luxury items are included and the profits from them used to defray the cost of keeping down the prices of essential goods.
The co-op shops have grown into supermarkets and form the largest supermarket chain in the country and are now expanding to neighbouring countries.
The government may do this in different ways on different products and for many different reasons, but one is called subsidisation and is generally illegal according to WTO rules, though many countries still do it. The idea is to give the country in question a competitive edge in certain areas of commerce. For example, in America, agriculture is generally subsidised because it is very inefficient and cost heavy. Farmers are given cash to produce goods cheaply and to keep costs low. If this were not the case, other countries that can produce the same goods more efficiently would take over the market and put American farmers out of work. Most poor countries are lobbying to end this practice (ie at G8 meetings) but the farmer's lobbies and political motivations are often stronger and win out. Hope that helps a bit! It was a complex question.
Because when they don't, more people end up begging on the street, or on welfare.
the gov't wants control of just about anything it can get it's hands on.... when that happens it slowly takes a little more control away from us, the people.
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