Price Ceilings Are Useless essays

Price Ceilings Are Useless essays Even dough I had to argue in favor of price ceilings, I hate price ceilings. Researching on the internet I couldnt find a good thing. (The example that I put in the presentation with the rice and everything is not good because the $ spent by the gov paying for water only to plant those plants is more than the whole harvest) Also in an article by by Roger Ream who is Director of Seminars of The Foundation for Economic Education he said that despite the economic knowledge that price ceiling makes suppliers not to fabricate as much and that this causes shortages and that this shortages pushes the prices higher than before. The government is still using price ceiling because they want to be in control. He also says that the government should stop this because they are hurting the people that already are hurt. Hurting the poor. Despite overwhelming economic knowledge that price controls (in this discussion, ceilings on prices) discourage suppliers, thus causing shortages and therefore eventually pushing prices above their free market levels, the clamor for controls never subsides. A plea on behalf of the poor is perhaps the loudest excuse for ignoring economic wisdom and imposing controls. This emotional appeal to the plight of the poor often blinds individuals from seeing things as they really are, rather. Controls lead to a less efficient employment of scarce resources, and this hurts the poor the most. It is those on the bottom of the economic ladder who have the greatest stake in efforts to create the most opportunities, goods, and services from limited resources. The effect of price controls will be shortages and eventually prices higher than they would be in an unhampered market; effects precisely contrary to the stated objectives of their supporters. ( Roger Ream) Rent controls in large cities are a type of price ceiling. The government says you cannot raise the price above the...