Goods prices in Thailand to be frozen through November

[NeverSure]

Econ 101.

1. You can control the price of something, but if you do you can't control the supply.

2. You can control the supply of something, but if you do you can't control the price.

This hurts the heads of Thais.

[MaxYakov]

So all these comments whinging...come on economists, give the answer that works........prices have been out of control for well over a year, with tax increases and minimum wage.....a freeze will give immediate help....Answers???

FWIW:

"Although price controls are sometimes used by governments, economists usually agree that price controls don't accomplish what they are intended to do and are generally to be avoided."

:

"Nobel prize winner Milton Friedman said "We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas.""

Ref: Price Controls - Wiki

[Chao Lao Beach]

Of course they would be glad because pork prces from 110-120 jump to 155-165 per kg, reason given was hot climate ,if maintain the price we turn to eat chicken which are cheaper.

But now wet season it is cool again, no price drop I see.

CP control 90% of pork in Thailand.

[GAZZPA]

Whilst it's difficult to turn the clock back, inflation will always have a marked effect on the economy.

A well-managed fiscal policy is the key to containing inflation, though I suspect the last government

failed on most accounts to prioritize this issue, and certainly mismanaged the economy.

Borrowing in particular must be regulated, as I have noticed household debt has increased substantially.

The economic bubble will at some point burst, then the banks will be under enormous pressure as in

1997. It's not if, but just a matter of when.

I think you could be right. Inflation rose at 2.62% in just the month of May this year, really high. Borrowing has rocketed, fuel is going up, land prices have soared and property is now on the rise. All this on a GDP contraction in Q1, doesn't really need a lot of thought to see that it has to change or it will burst for sure.

The issue will always be for poorer people. If food is a higher percentage of your expenditure and you have little disposable income then the increases in food prices will really be felt.

I guess we will see if the Coup works, if reform happens and if the Thai people get a government who can manage and balance the economy,,,

[rayw]

Well lets not be cynical as a price freeze is overall a good thing. What I want to see is strict controls on excessive profits and unrealistic fat cat CEO wages with these manufacturing, distribution and retail businesses as that is really where most of the inflation over recent years has arisen. So the usual greed based price hype as well as corporate fraud and we still see the rich get even richer and the poor get even poorer, and that is what is so so sick in places like the USA and UK. Until that changes then price freezes will help but only delay the inevitable. Be good if some profit level control was applied so we have fairer capitalism i.e. true honest capitalism like we used to have many years / decades ago and not the extreme uncontrolled evil capitalism we now have.

We need properly controlled capitalism with strict corporate laws and /or high taxes for greedy offenders; laws and control I believe that most ordinary folk (about 95% of us) I am sure would like to see back again and fairness prevail. Today we do not even have survival of the fittest or the best, we now have survival of the most corrupt and dishonest, i.e. nasty, corrupt and destructive extreme capitalism at work and that even starts to make the horrors of communism look preferable for the vast mass of people !! We really need a structured fair centre way that embraces all the good points from both capitalism and socialism and turn our backs on extremes.

Edited June 17, 2014 by rayw

[Robby nz]

Bread has dropped in the last 2 weeks from 37b to 34b for the same size wholemeal bread I buy.

So people will no longer have to eat cake.

Edited June 17, 2014 by Robby nz