{"id":2027812,"date":"2023-09-11T11:09:05","date_gmt":"2023-09-11T15:09:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/price-limits-are-terrible-for-people\/"},"modified":"2023-09-11T11:12:30","modified_gmt":"2023-09-11T15:12:30","slug":"price-limits-are-terrible-for-people","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/price-limits-are-terrible-for-people\/","title":{"rendered":"Price limits harm individuals."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">8<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fprice-limits-are-terrible-for-people%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2027812&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<div class=\"my-5\">\n    <em>\u200bCommentary<\/em>\n  <\/div>\n<h2>Why Senator Hawley&#8217;s Credit Card Interest \u200dRate\u2063 Bill\u2064 is a Bad \u2064Idea<\/h2>\n<p>Senator\u200c Josh\u200c Hawley (R-Mo.) recently introduced a bill that would limit\u2063 the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/price-limits-are-terrible-for-people\/\" title=\"Price limits harm individuals.\">interest rate credit card issuers<\/a> can charge at 18 percent. This is populism and not well-thought-out\u200c policy.\u2062 Many other populist policies\u2062 are popular, but\u200c their real effect isn\u2019t what was advertised. \u2062Mr. Hawley\u2019s \u2062idea also is terrible economically and will hurt the people it is \u200cdesigned to help. The senator is\u200c a conservative firebrand, but this policy\u2063 shows\u2062 they\u200d didn\u2019t teach Microeconomics 101 \u2064in law school. He has been admirable\u200b in drawing attention to and speaking \u2063out on many issues\u2014but he missed the\u200c mark badly on this one.<\/p>\n<p>For context, why is 18 percent the ceiling? Why not the prime \u2064rate?\u2063 Why not Sen. \u2064Bernie Sanders&#8217;s idea of\u200d a 15 percent\u200c cap?<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-claims-inflation-will-get-worse-if-republicans-win-midterms-as-prices-soar-under-democrat-control-4796267\">Biden Claims Inflation\u200b Will Get Worse\u200d If Republicans Win Midterms as Prices Soar Under\u200c Democrat Control<\/a><br \/>\n        <span class=\"text-comp-caption\">10\/14\/2022<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/un-agency-wants-inflation-to-be-fought-with-price-controls-windfall-taxes-tighter-regulations-4773389\">UN Agency Wants Inflation to Be Fought With Price Controls, Windfall Taxes, Tighter Regulations<\/a><br \/>\n        <span class=\"text-comp-caption\">10\/4\/2022<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>Demand curves always have negative slope. The\u200d less you \u2063charge for something, the higher the demand will \u200bbe. Just because demand \u200dis \u200bthere \u2063doesn\u2019t mean suppliers will fill \u2062the gap at the capped price. There\u200d are marginal costs to\u2063 production, and if the marginal revenue isn\u2019t at least equal to or greater \u2064than \u2062the marginal\u200b cost to produce one more, demand\u2064 goes unfilled.<\/p>\n<p>In a normal free and unfettered market,\u2063 the \u2063price would increase. The ceiling doesn\u2019t allow\u200d that to\u200d happen.<\/p>\n<p>We saw and are experiencing the \u2063same <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/d-c-lobbies-cut-inflation-by-importing-cheaper-workers\/\" title=\"D.C. Lobbies: Cut Inflation by Importing Cheaper Workers\">economic logic<\/a> with the Inflation Reduction Act. \u200bThe Democrats capped the price\u200b companies could charge for many drugs, and now it\u2019s tougher to get those drugs. \u2062Price caps\u2063 create shortages since \u2063supply gets\u2062 mismatched with demand. Below is\u2063 what it\u2063 looks\u2064 like graphically. With\u200d the\u200d price\u200b ceiling, the quantity\u200b demanded (Qd) artificially grows, and the quantity supplied (Qs) sits at the\u2063 demand level associated with \u200bthat price. The \u2062Inflation Reduction Act has done absolutely nothing to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morgan-stanley-threat-of-high-inflation-is-real\/\" title=\"Morgan Stanley: Threat of high inflation is real\">curb inflation<\/a>.<\/p>\n<div class=\"my-5\">\n    <img decoding=\"async\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/09\/11\/id5489576-Picture1int.png\" alt=\"Graphical \u200brepresentation of price ceiling effects\" target=\"_blank\" rel=\"noopener\">\n  <\/div>\n<p>What would the effects of the\u200b Hawley price \u200cceiling\u200d be? Fewer people \u200cwould \u2062get access to\u2062 credit and \u200dmost probably they would be \u200cpoor\u200c and\u200b lower middle class. They might need access to \u2063that credit in order to\u200b get things they\u200d need while they wait for\u200d their wage\u200b payment.<\/p>\n<p>You might\u200d think to \u200dyourself, \u201cWell, those poor people shouldn\u2019t be\u200c using \u2063credit anyway because it is bad for \u200ctheir financial health.\u201d\u2062 That invites \u2063the slippery slope of government into your own personal\u2063 finances. Maybe\u2064 you are doing things\u200d that aren\u2019t exactly textbook when it comes to your own financial health. \u2062Do you want government regulating what you can do with your own\u200d money you\u200d earn?<\/p>\n<p>(Source: Intelligent Economist)<\/p>\n<p>There are\u2062 very few government officials that \u2064actually buy into classical economic theory. \u200dThey love to trot out or pillory economists Milton\u2063 Friedman or Thomas \u200cSowell \u200dwhen it works for their political point. They even talk a good game when it comes to \u201csupply-side \u200beconomics.\u201d \u200cHowever, \u200bmost government officials are focused on the demand curve when it \u2064comes to economics. When\u200b they\u2064 question Federal Reserve officials or economists, it\u2019s from the demand \u2064perspective.<\/p>\n<p>As anyone who is\u2063 serious about economics knows, demand is \u2062hard\u200b to predict \u2064and control. There is a lot of variability\u200b in \u2062demand. That\u2019s why when you go to\u2064 university business schools, there are zero programs in how to set up and administer a \u201cdemand chain.\u201d However, \u200bthere are plenty of programs designed to\u200d administer a \u201csupply chain.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Senator Josh Hawley (R-Mo.) proposed a bill capping credit card interest rates at 18 percent. However, this populist measure lacks careful consideration and may not deliver the promised outcomes. It joins a list of popular yet ineffective policies. Economically, Hawley&#8217;s idea is detrimental and will negatively impact the public.<\/p>\n","protected":false},"author":2403,"featured_media":2027813,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2027812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2027812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2403"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2027812"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2027812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2027813"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2027812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2027812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2027812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}