Rising Costs In Thailand: 4-Month Retail Price Freeze

[BigJohnnyBKK]

I see, some here are still brain washed by the government. Care? For the people? Atleast we know which side you stand on.

Likewise, how would you like it if businessmen "paid a visit" to locals for the purpose of "keeping the voice down". Business leaders going to locals and paying them to stop complaining to the government about high cost and etc.?

This is simply propaganda. You are just covering a lie up. You are masking up the situation. Clearly there is a problem, but there are no attempts to fix that source. All they are doing is just covering up the problem with a beautiful lie? PATHETIC, WEAK.

Truth of the matter is, the government has stirred the country in the wrong direction econimically-wise. What's the word again? Oh yes, correct, CARE. Protect the good honest hard working people, let's destroy the rich greedy businessmen. They are our enemy. NEWSFLASH. GET REAL.

OK people. I CARE for you, I love you. Please vote for me again. I will give you wage rises (even though I am not your boss, but I will find a way to force your bosses to do so), I will give you many benefits and tax incentives (by wasting the country's tax revenues from YOUR POCKET on useless giveaways, which could have been spent more smartly on infrastructure, green energy, technology), I will fix all your problems (by covering them all up and we can forget that we have problems)

There is always cause and effect. A government is one that acts above all in the interest of improvement and the future. Not a slave to the society. A good government is one that sets a greater example not in the interest of any individual or specific group. Sure we could have this government giving us wage rises resulting in higher pricing of EVERYTHING, tax incentives for cheaper cars, free computers, tax breaks for businesses, cheaper fuel for the first few months to help deplete the oil fund quickly so we can all enjoy high fuel prices for years to come. Are you happy now? Mr. CARE? Mr. The government is my love?

Please get professional. We dont like our taxed money going all those mentioned routes. We want our tax money to be spend on better roads and infrastructures, more cctv cameras for securities, spend on green energy research investment (solar, hydro, etc.), spent on becoming invulnerable to natural disasters (Complete renovation of the sewer system to be capable of taking 2x-3x the water we've seen before. Floods dont get smaller, they get worse.) and plant more trees in our city. None of these is personal interest. The government has to do the right source of tasks that the public wont do. That is their job. Would you want to build the road with crack holes in it? Hell it's not my business, who's is it? That's where government fits in. To do the greater good for the public.

Back to the topic. The government has caused inflation and rising costs. The public are hurt by this and complain. The government goes to businesses and SILENCE this complaint. Does this magically make it dissapear? Costs are still high, businesses operating near equilibrium with no profit. Soon businesses start to leave as this country has no future run by monkeys. As soon as 4 months is over, DONT expect a minor price increase we seen. We will see major increase like we've never seen before. Once again the government has failed. By silencing 4 month period, it's like fitting a tiger inside a locked cage with hunger for a long time. Once released, it will kill many more. Without government intervention, inflation of prices would be constant at 2-3% according to market situations, but BECAUSE of government "silence 4 months". Once that time period is up, we can expect 10%+ inflation of prices. Because that lie of stable prices has struggled to maintain at that price, and it will burst when the time is up. Remember, we businesses never lose. We are long term. We dont eat our meals paycheck to paycheck. That is what separates the rich from the poor. As long term thinkers, we may agreed to minor temporary losses, BUT expect gains from the losses after that 4 months. Why do it, if we lose? We're not stupid are we? If this place sucks, we'll go somewhere where we are wanted. Opportunities are open. Vietnam looks attractive. Go ahead and "CARE" for your people, in the end all you got is your people. See what they can do for your country. just cry like babies all day. Sometimes the fault lies not with the rich, lies with the poor. Just cry and complain. Are the rich, rich by birth? And continue that way? NO, the rich are people who got guts and deal with their own problems. The poor just whine and complain and seek assistance. Oh prices are high..... I have no money..... (buys another bottle of beer to ease stress).

So good luck with happy people = high wages, high costs, high fuel price, low business profit (bankrupt), less exports due to uncompetitive prices, want more for work less attitude, less tax collected from businesses so we can have less funding for governement activites (real smart, lower ur main source of government income. stab urself with a knife). good luck really... luck is the only thing that's left.

Your ideas may or may not have merit, but if you want people to read them you need to avoid posting such a huge wall of text, and just in a brief scan (tl:dr) looks like a random rant.

[Cheops]

Just 1 simple question:

How can it be that the price for let's say minced pork in Thailand is higher than in the Netherlands?

In the Netherlands the transportation costs are higher, the costs of holding and feeding the pigs are higher, etc.etc.

So how can this be? Some people in Thailand are getting incredible rich of selling pork.

Just a few years ago the price was half of the price it is now. Sure transportation costs have maybe doubled, but the transportation costs are not 100% of the price of pork!

Can someone explain this to me? Or am I correct that some people who control the pork business are getting very very rich?

[thaihome]

This reminds me of Nixon's wage and price freeze in 1971. It is a shining example of a complete failure to control inflation. I'm unsure how anyone thinks freezing prices while at the same time raising the minimum wage is going to control long term inflation pressures. It seems like more of a political move rather than an real economic policy.

TH

For those too young to remember (or not Americans):

President Nixon Imposes Wage and Price Controls

August 15, 1971. In a move widely applauded by the public and a fair number of (but by no means all) economists, President Nixon imposed wage and price controls. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Inflation had been raging, exceeding 6% briefly in 1970 and persisting above 4% in 1971. By the prevailing historical standards, such inflation rates were thought to be completely intolerable.

The 90 day freeze turned into nearly 1,000 days of measures known as Phases One, Two, Three, and Four. The initial attempt to dampen inflation by calming inflationary expectations was a monumental failure

[trainman34014]

Just 1 simple question:

How can it be that the price for let's say minced pork in Thailand is higher than in the Netherlands?

In the Netherlands the transportation costs are higher, the costs of holding and feeding the pigs are higher, etc.etc.

So how can this be? Some people in Thailand are getting incredible rich of selling pork.

Just a few years ago the price was half of the price it is now. Sure transportation costs have maybe doubled, but the transportation costs are not 100% of the price of pork!

Can someone explain this to me? Or am I correct that some people who control the pork business are getting very very rich?

Supply and demand. The Chinese are now consuming more Pork than at any time in their history as more Chinks become 'Middle Class' and want to eat meat instead of the old diet of Rice, Noodles, Vegetables,Soup in any combination. Other Countries in the region and on the Sub-Continent are also eating a lot more Pork and the supply is shrinking, so the price will naturally rise. In the next year or two your mince will become a lot more expensive than it is now.

Edited May 18, 2012 by trainman34014

[hellodolly]

Manufacturer's set retail prices? I didn't know that.

Haven't purchased a vehicle have you? Automobile manufacturers have minimum prices they demand dealers respect.

Have you considered an ultralaptop? Intel has set the minimum prices on its key components which has a direct impact on the final price of the product. Do you think LG is going to tolerate a dealer selling a current TV for below cost and damaging its retail network?

What are you talking about. Manufacture prices have nothing to do with it,

This is the government forcing price freezes to justify their statement that prices are not rising. Surely even you can see through that.

[hellodolly]

I would one of the first to say that market regulation is good to maintain quality, safety, quantity, to stop gouging and to empower the consumer. However, this policy is extreme market manipulation to atrifically support Yinglucks assertation that prices arent rising under a PTP government and a blatant attempt to politically masturbate the voting public.

U cant vote so why the political involvement.

I would suggest you look at the sub heading of the Thailand news forum.

"Thailand related news and discussions around them."

A dictionary definition may also be helpful.

"Forum: a meeting or medium where ideas and views on a particular issue can be exchanged"

As I've mentioned before this isn't Thailand it's the internet. Maybe what's upsetting you is people on here who are intelligent enough to know that if prices aren't rising as stated then there wouldn't be a need to push manufacturers to freeze their prices.

Most governments have some problems like this but this government, as it's the one under discussion has suffered as far as I can see by a combination of stupidity and dishonesty.

I wonder if they could still have won the election without the populist policies. If they could have they would have had a strong base to make a real change for the better and the PM could have provided a boost for women in Thailand.

Sorry about the rant but I get fed up with people who tell posters they can't disagree with the anything to do with Thailand and Thais but feel it's their right to dictate to the rest of the world's population.

I strongly believe that if it was the Dems in power they would not be saying that. They would be voicing their opposition to the plan.

[hellodolly]

I would one of the first to say that market regulation is good to maintain quality, safety, quantity, to stop gouging and to empower the consumer. However, this policy is extreme market manipulation to atrifically support Yinglucks assertation that prices arent rising under a PTP government and a blatant attempt to politically masturbate the voting public.

<deleted>?!

people should look to use more coins rather than banknotes.

Are the red shirts really dumb enough to believe Yingluck's assertion that prices are not going up up up? Or realize that the rising prices are due to her governments ill-conceived policies?

They are

[Thai at Heart]

Manufacturer's set retail prices? I didn't know that.

Haven't purchased a vehicle have you? Automobile manufacturers have minimum prices they demand dealers respect.

Have you considered an ultralaptop? Intel has set the minimum prices on its key components which has a direct impact on the final price of the product. Do you think LG is going to tolerate a dealer selling a current TV for below cost and damaging its retail network?

What are you talking about. Manufacture prices have nothing to do with it,

This is the government forcing price freezes to justify their statement that prices are not rising. Surely even you can see through that.

If you want to be an official distributor of products, it is very standard to have a minimum price stated in the contract. A Toyota dealer does not have the freedom to sell the product at whatever price he wants. Beyond that, when you consider that retailers are often simply renting space to for example electronics manufacturers, the regional office of that company will often have to approve discounts or BOGOF deals that are run in the retailers shop.

However, this thread obviously concerns food, and there are many products in Thailand that are under maximum price control ex supplier in Thailand, sugar, eggs and others. Egg producers at the moment are losing money because the Dems removed the effective oligopoly and opened up the supply. Supply has rocketed, chicken feed costs have increased, and the maximum price ex factory hasn't moved yet.

[ginjag]

Pepsi Co..Sell the brand Lay potato crisps, priced marked top Rt corner, In Thailand you can sell these Pkts at any price, Udon airport, 20 bht pkts were priced at 40 bht, Can of coke normally sold at 14 bht, were selling at 20bht, arrivals and 40 bht at Departure gate. Pier at Sth Pattaya mini mart similar prices. Would Pepsi take action if told. ??????? and give valid reason anyway why airports do charge more ?????. recommended prices---out the window--do they exist ???? what control in Thailand--retail price freeze ???

[hellodolly]

Pepsi Co..Sell the brand Lay potato crisps, priced marked top Rt corner, In Thailand you can sell these Pkts at any price, Udon airport, 20 bht pkts were priced at 40 bht, Can of coke normally sold at 14 bht, were selling at 20bht, arrivals and 40 bht at Departure gate. Pier at Sth Pattaya mini mart similar prices. Would Pepsi take action if told. ??????? and give valid reason anyway why airports do charge more ?????. recommended prices---out the window--do they exist ???? what control in Thailand--retail price freeze ???

Speaking of air ports I notice McDonald's and Burger King have higher prices than else where.

[Skywalker69]

This idiot does his shopping in a 7-11?

Photo option.

[Skywalker69]

My daughters in England complain of rising prices, my son in the Philippines does the same, my friends in Malaysia do the same, in Thailand I have started growing a few vegetables on a small plot (8 sq m), rising costs seem a universal trend and always will be.

A simple example is coinage, small coins gradually go out of circulation, remember the farthing and the ha'penny? What about those shiny little coins you get in change at BigC, what do you do with them?

Conclusion. Politicians all over the World is to expensive.

[losworld]

Just 1 simple question:

How can it be that the price for let's say minced pork in Thailand is higher than in the Netherlands?

In the Netherlands the transportation costs are higher, the costs of holding and feeding the pigs are higher, etc.etc.

So how can this be? Some people in Thailand are getting incredible rich of selling pork.

Just a few years ago the price was half of the price it is now. Sure transportation costs have maybe doubled, but the transportation costs are not 100% of the price of pork!

Can someone explain this to me? Or am I correct that some people who control the pork business are getting very very rich?

Supply and demand. The Chinese are now consuming more Pork than at any time in their history as more Chinks become 'Middle Class' and want to eat meat instead of the old diet of Rice, Noodles, Vegetables,Soup in any combination. Other Countries in the region and on the Sub-Continent are also eating a lot more Pork and the supply is shrinking, so the price will naturally rise. In the next year or two your mince will become a lot more expensive than it is now.

There is plenty of supply. The chief factor is unregulated speculative trading... when will you guys wake up?

[OzMick]

Just 1 simple question:

How can it be that the price for let's say minced pork in Thailand is higher than in the Netherlands?

In the Netherlands the transportation costs are higher, the costs of holding and feeding the pigs are higher, etc.etc.

So how can this be? Some people in Thailand are getting incredible rich of selling pork.

Just a few years ago the price was half of the price it is now. Sure transportation costs have maybe doubled, but the transportation costs are not 100% of the price of pork!

Can someone explain this to me? Or am I correct that some people who control the pork business are getting very very rich?

Are you telling us that minced pork in the Netherlands sells for 2-3 euro per kg?

[meand]

The thing I don't understand about these price ceilings and even reductions is that it really turns into a quality control issue at the end, as in you are lowering the quality.

Let's say here (I think this example could apply to anything) that the PM says that pork, rice and basil has to be at 30 baht a plate. Well, what if there is a guy that likes to buy really good cuts of pork for his customers? To me, all this BS is just saying... "produce shit, and charge shit for it". Sure, the one thing it will curtail is people producing shit and charging high prices, but all this is really going to do is just lower overall quality.

[jobsworth]

This idiot does his shopping in a 7-11?

where do you buy milk? or don't you?

[ginjag]

Have been reading the posts, 1 said supply and demand-Ha. others comparing items abroad-Ha. All I have to say is---no need for the prices to be so high-manufacturing, low wages, low overheads, sbstandard goods in general, most people are conned.....My interpretation---GREED--examples..car-pork and chicken-oil-fruit-milk-bread. NOT on your nelly do these items have to be anywhere near or Dearer than Europe. TIT dont forget where costs and labour are next to nowt. Give us a break P.M. sheltering your business friends as always.

[aussiebebe]

The thing I don't understand about these price ceilings and even reductions is that it really turns into a quality control issue at the end, as in you are lowering the quality.

Let's say here (I think this example could apply to anything) that the PM says that pork, rice and basil has to be at 30 baht a plate. Well, what if there is a guy that likes to buy really good cuts of pork for his customers? To me, all this BS is just saying... "produce shit, and charge shit for it". Sure, the one thing it will curtail is people producing shit and charging high prices, but all this is really going to do is just lower overall quality.

Good point but it is also an issue of quantity. Manufacturers in every country routinely downsize products while keeping the price the same; a price rise by stealth. The food vendor in your example could continue sourcing higher-quality pork but reduce the serving sizes and disguise this by increasing the serving or rice and/or the amount of vegetables in the dish.