Tuesday, October 30, 2012

Price Ceilings

In my opinion, the government should not impose price ceilings on our current economy. Ideologically  I do not think it is the place of either federal and/or local governments to dictate the price of goods and services. By interfering with the free market, the government is restricting business owners and suppliers ability to create their own profit, by their own means. Additionally, on a practical level I do not even think price ceiling is effective on achieving what it is supposed to be working toward. When the government interferes with the market and creates a price ceiling of a certain good, while the price of the good is much cheaper than it would normally be, the supply ends up becoming too little to sustains how many people demand that product. Furthermore, by creating a price ceiling, illegal trading and black markets appear which defeat the whole purpose of the price ceiling in the first place. The government should not impose price ceilings because it is not the place of the government, and it is not effective.

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