Why wont the government put a cap on rising prices?

Answer 1

Because some people understand supply and demand, unlike dumb liberals who have a conspiracy theory for everything.

Answer 2

Because the government is not and should not be a retail watch dog. It's not the job of the guv'ment to be sure that you can afford everything.

Because the consumers regulate the prices. If consumers are not willing to pay 1.99 for your new widget from Mr Gidgettes then he will be forced to either eat the loss of money or he will reduce his price. If 1.99 is a great price for the widgets, then the price will go up and the supply of them decreases. It's called supply and demand. Gas is in demand, the price goes up. If we didn't use so much gas, there'd be a glut and you would be hard pressed to give the stuff away.

Supply and demand-it's a beautiful thing!

Answer 3

Because government imposed price controls don't work. It's been tried----government can't control supply and demand! Cap a price, and you've done nothing to stem demand. So you end up with shortages. If you're thinking about gas prices, you might not be old enough to remember, but in the 70's/80's, there were very long lines at the pump, rationing, odd/even days, etc. A miserable failure.

Answer 4

I assume you mean rising oil prices?

Because the government doesn't control rising oil prices. The market controls oil prices, as defined by supply and demand. Right now people are still driving huge cars, an they're driving more because it's summertime, driving up demand, while the war in Iraq and lingering effects from hurricane Katrina (we're still not up to 100% in the Gulf, where we got 70% of our oil supply pre-Katrina) are hampering the supply.

What's the government supposed to do, say "hey, don't charge people what that gas is worth (and what people are apparently willing to pay for it)!"?

Answer 5

Simply put...it's not the Government's job to do so. You know nothing about Supply & Demand...do a little research. At Market prices, you can have all the gas you need, or can afford. With Caps, you'll get Black Markets and Shortages!!! It's benn tried and done before, with the same disaster-like consequences.

Answer 6

Because Bush is a oil head. And our government is so greedy that they would see you die befor that would do anything to help. And as far as supply and demand as some have said that is just plan B/S Its all about power and money. We have oil here in the USA but we also have a bunch of idiots crying because we mite kill a fish or a mouse if we get it out of the ground. And your government wants you to believe there is a oil shortage so they can help the rich oil co. keep the price up. And its all B/S

Answer 7

You think the government should cap the price on ice cream?

Or are you talking about another product? Actually, it shouldn't matter what product you are talking about. Supply and Demand set the prices of everything in our country, not the government.

Answer 8

Because this is a free market economy. It is how business works in a democracy. If you want the government to stop high prices, or to set prices for you, move to China and be a communist.

Answer 9

The government is not (except in extreme cases) permitted to control the prices of things. The United States Constitution limits the powers of governments to interfere with private enterprises and private markets.

However, in extreme circumstances, Congress has used its power to regulate interstate commerce to subsidize the prices of certain items they believe it is essential for the consumer to have (prescription drugs, for example).

But by and large, these efforts fail because the provider of the good or service simply increases the price to account for the government subsidy and by doing so, they increase their profits.

In the case of gasoline, the government actually could reduce the prices if they chose to,by reducing the amount of taxation they charge for the manufacture, transporation and selling of gasoline. But it is unlikely that Congress would do this because to do so would reduce the amount of revenue generated to the federal government by the trade in fuel oils.

Keep in mind that the most prevelant way governments affect the prices of goods is by taxing them. This they do to increase the price of the good in order to discourage its use (like cigarettes) or to raise government revenue (like with gasoline). In either case, the government has a powerful disincentive to reducing the costs to the consumer.

They are themselves addicted to the revenue generated by the taxes and to the power that such revenue gives them to spend money on their pet projects or on their constituents' behalf (thus ensuring re-election).

But in the case of products like movie admission, clothing, food, automobiles, etc. the only role government can play is to increase the costs of such items by increasing the taxes paid to manufacture them or sell them, or ship them interstate.

Keep in mind that while Exxon Mobil made more money than any other company in the history of business during the recent gas shortage, the government made nearly four times as much from the revenues generated by gas taxes, excise taxes, and fuel oil sales taxes.

Additionally, the government has absolutely no control over OPEC (extra-national producers and exporters of crude oil) many of which are controlled by governments hostile to free markets, Western Civilization and United States citizens in particular. (e.g Venezuela (Communists), Saudi Arabia (Islamic Extremists), Nigeria (Black Racists)).

Answer 10

it's called greed and don't believe these conservative jerks who talk about free enterprise.....Oil is expensive because the oil companies want to price gouge.....they use any and every little incident that comes up in the world today to justify their greed. If these conservative jerks on this site want to take it from behind from the greedy politicians and and oil companies they shouldn't hide behind capitolism. They claim anyone who doesn't think the way they do are bleeding hearts......do you think Bush or Cheney really care about anything but your vote? Conservatives whether they are republican or democrat are idiots.

Answer 11

because its money money money mo-nay to the rich corporations who have lobbyists in DC, who influence OUR politicians with more money money money mo-nay!

ALSO.. were not COMPLETELY a capitalistic country. Having only a handful of oil corporations, they can raise the price to what ever they want (something like a monopoly). There should be a cap, the oil companies make billions regardless.