Thanks, fedup2.
This just goes to prove once again, that price controls do not work. They force inefficiencies on the market. Much of the time period in reference's woes were as a direct result of govt. overspending on the Vietnam war coupled with oil shocks. Does that bring to mind anything today?
MRJ, that wreck would not have happened if the president and his govt. had known a little bit about economics. Isn't this the same phenomena with fat cattle that Pickett argued happened in the cash market? Think about it.
To answer your question, the market should determine what is a "fair" level of profits. This should be a free market that does not have all the evils of market power as an influence. Government determining this is called a "state run economy" and you have only to look at China or Russia to see the inefficiencies in an economy that govt. decisions on the free market create.
This just goes to prove once again, that price controls do not work. They force inefficiencies on the market. Much of the time period in reference's woes were as a direct result of govt. overspending on the Vietnam war coupled with oil shocks. Does that bring to mind anything today?
MRJ, that wreck would not have happened if the president and his govt. had known a little bit about economics. Isn't this the same phenomena with fat cattle that Pickett argued happened in the cash market? Think about it.
To answer your question, the market should determine what is a "fair" level of profits. This should be a free market that does not have all the evils of market power as an influence. Government determining this is called a "state run economy" and you have only to look at China or Russia to see the inefficiencies in an economy that govt. decisions on the free market create.