Commerce Min Expedites Efforts to Reduce Living Costs

[webfact]

BANGKOK (NNT) - Efforts to alleviate the financial burden on citizens have become a government priority.

 

Talks are scheduled between high-level officials and major businesses to discuss lowering product prices, expected to take concrete shape by early October.

 

Deputy Prime Minister and Minister of Commerce Phumtham Wechayachai mentioned the measures to help the populace, focusing on reducing the prices of goods, particularly since fuel prices have already dropped.

 

A 15-day period has been set to examine the cost structure of various types of products, including rice, meat, chicken eggs, and about 20 other items. Clarity on this issue is expected in early October.

 

In the coming week, the government will negotiate with large-scale operators. Previous talks have been held with some businesses to find a balance that is acceptable to both producers and consumers.

by Namo Vananupong

 

Source: NNT 2023-09-21

 

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[scorecard]

Go for the throat, legislate maximum prices for food and other essentials. 

[mfd101]

Mmmm, well, a free market economy works only where there are minimal levels of corruption at all levels of society ...

 

The alternative, when there is corruption at all levels, is various forms of governmental control (ie 'socialism'). And one control leads to the need for a counter-control elsewhere etc etc.

 

Unforeseen consequences are a Thai specialty.

[scorecard]

17 minutes ago, mfd101 said:

Mmmm, well, a free market economy works only where there are minimal levels of corruption at all levels of society ...

 

The alternative, when there is corruption at all levels, is various forms of governmental control (ie 'socialism'). And one control leads to the need for a counter-control elsewhere etc etc.

 

Unforeseen consequences are a Thai specialty.

So how come many countries with very low levels of corruption are partly socilaized?

 

LOS is of course another case!

[mfd101]

1 hour ago, scorecard said:

So how come many countries with very low levels of corruption are partly socilaized?

 

LOS is of course another case!

Mixed economies work quite well in most Western countries other than the US (which, compared to the others, is so far to the political right as to have disappeared over the edge). But they need to be mostly non-corrupt societies and getting the mix right is difficult. And in any case the 'right mix' changes over time. Unforeseen consequences can be a problem in any country, just worse in Thailand where popular culture does not encourage forward thinking.

 

And overly-'socialized' economies (not to mention societies) struggle to work coherently. France comes to mind, a country which for an Antipodean to live in is a bit of an authoritarian shock (as I discovered in the 1970s). Lucky countries such as Australia do well with smallish population, lots of wealth to dig up & generate, and egalitarian attitudes positioned between government control & free enterprise (the inheritance of its penitentiary origins - dependence on & loathing of the jailers).

[hotchilli]

4 hours ago, webfact said:

A 15-day period has been set to examine the cost structure of various types of products, including rice, meat, chicken eggs, and about 20 other items. Clarity on this issue is expected in early October.

Most of my daily consumables have risen multiple times over the last 9 months.. 

all citing dubious reasons why.

[Srikcir]

4 hours ago, scorecard said:

legislate maximum prices for food and other essentials. 

The Thai government already has the authority to price control for food, consumer products and services via the Central Committee on the Prices of Goods and Services. This includes essential items for daily use such as farm products like fertilizers, pesticides, animal feed, etc.

https://www.nationthailand.com/thailand/policies/

So it would seem it's the PM's Cabinet that can direct the Committee to develop further price controls aiming to ease the burden on the public.

[Enzian]

4 hours ago, scorecard said:

So how come many countries with very low levels of corruption are partly socilaized?

Because those countries socialize carefully selected segments with restraint and intelligence. Need I spell it out? TIT.

Price controls never result in optimal outcomes for everyone. Sooner or later (and it can take a long time in some cases) prices will revert to the mean, except that that figure may actually be higher than that which would have resulted with no controls and better policies. There are so many moving parts in any situation that economists can't be exact, but the general rule holds.

I like populism, but this new government is already trying too hard to have its cake and eat it too.

One thing that would help Thai consumers greatly would be genuine competition in a range of consumer product prices, which I dare say is minimal right now in many areas.

Edited September 21, 2023 by Enzian
More detail

[khunPer]

5 hours ago, webfact said:

Talks are scheduled between high-level officials and major businesses to discuss lowering product prices, expected to take concrete shape by early October.

Seems like a difficult mission, when wages are going to rise...????

 

Normal economic teaching is, that the government have to lower the consumers cash flow – i.e., higher interest – to reduce inflation and prices. Lower demand equals lower prices. If consumer's cash flow is high – i.e., pay rises and 10,000 baht extra for spending – demand will increase, and so will prices. Furthermore, if labour costs rise (much) faster than inflation, it will result in further price increases.