Kamala Harris economic plan to focus on groceries, housing and healthcare
sylver_dragon @ sylver_dragon @lemmy.world Posts 4Comments 960Joined 2 yr. ago
sylver_dragon @ sylver_dragon @lemmy.world
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You don't. Price controls don't work and usually backfire in the long run.
Instead, you modify the incentives which exist around prices via taxation. As a simplified example, if you want to prioritize lower prices on staples such as milk, vegetables or beef, then businesses which can show that their margins on those products are within a defined range pay 1% less on corporate taxes. The numbers and ranges would need to be discovered via both study and experimentation. But, by tying a savings for those business to their behavior, said behavior can be influenced. The prices can then be further manipulated lower in the logistical chain, either by direct subsidy or via similar manipulation of incentives to growers and distributors.
Yes, but functional capitalism requires regulation to prevent monopolies, collusion and other activities which distort markets. And there are plenty of areas where capitalism fails and government (read:socialism) needs to step in to provide something which society needs, but for which the incentives do not exist to provide it in an efficient manner. Or for which the efficient providing of that thing creates moral hazards. There is a reason we don't privatize the military.