• rockstarmode@lemmy.world
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    2 years ago

    The things that are capped no longer produce (as much) profit, so food suppliers move to items that do bring in profit. Uncapped goods are now more desirable, and the suppliers increase prices to try to make up for the shortfall caused by price controls, making uncapped items even more expensive.

    Government intervention like price controls always makes things more expensive, it’s just a question of where that expense is spread to.

    • FluffyPotato@lemmy.world
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      2 years ago

      The government capped the price of electricity here a short while ago and that lowered the price of power massively.

      Seems the solution would be to cap the price of all food then.