Debate: Can there be price controls without shortages?
I think the answer is yes with subsidy. The congress could give welfare to businesses. It could afford to do that by making a high denomination coin and depositing it in its bank account. U.S. coins are real money and therefore government doesn’t need to borrow pounds. Safety 16:21, 14 November 2009 (EST)
- This is not a debate topic, this is a question that should be able to be answered by any introductory economics student, including Conservapedia's own, correctly. Your answer is incorrect. The answer is yes, but it has nothing to do with subsidies. If a price control is non-effective, that is the price control is higher than the market price, than there would be no shortages. However, your proposal is very dangerous if taken literally and would bankrupt a nation instantly because of the concept of arbitrage. Essentially, what you are saying is that regardless of the market price, the government will pick up the tab over a certain price. Well, what would I do then if I were a seller? I would jack up my price, in theory, to infinity, to reap the maximum profit possible. Brown25 13:33, 16 November 2009 (EST)