>>let me rephrase
>>
[quoted text clipped - 16 lines]
>
> Choose less expensive products?
1) Lower the demand.
2) Increase the supply of materials and labor.
3) Decrease the amount of onerous regulation and requisite "paperwork" (that
only goes to featherbed bureaucrats).
rogstars had written this in response to
http://www.thestuccocompany.com/construction/Re-Construction-Demand-and-Supply-1
5297-.htm
:
-------------------------------------
>>let me rephrase
>>
>>its a question on construction demand and supply
> (Remember this above line, it is an important part of supply and
> demand.)
>>with increase of construction demand leads to high prices of built
>> products
>>
>>so my questions are
>>
>>1) Why must prices of built products be reined in?
> Reined in by whom? The buyer? Or some form of (ill-advised) regulatory
> body?
>>2) How can prices of built products be reined in?
> Choose less expensive products?
Thx for your reply
Lets say if its a capable government that reined in the prices.
Why do they do that
and secondly how can it be done
btw is rein's meaning similar to control/guide
thx
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PeterD - 22 Sep 2008 15:04 GMT
>rogstars had written this in response to
>http://www.thestuccocompany.com/construction/Re-Construction-Demand-and-Supply-1
5297-.htm
[quoted text clipped - 25 lines]
>
>Lets say if its a capable government that reined in the prices.
Oxymoron... If the government was capable, it would not rein in
prices. That would amount to a market situation where the economic
factors do not balance. The governement would be telling suppliers to
sell at a given price without regard to their costs to produce the
products.
Some poorly thought out plans implemented tried this. In California
(USA) there was a similar situation where the government regulated the
consumer price for power (electricity). They did not (could not)
regulate the cost of the power to the utilities, which resulted in
utilities being forced to sell power for less than they paid for the
power. The final result was that for several years California suffered
from problems related to this very ill-advised price fixing!
>Why do they do that
They *should* never do that. To control one price, the government must
control *all* prices. That's socialism, and conflicts with the free
market principal employeed by virtually every country in the world.
The very few countries that don't use a free market economey are
easily spotted by their poor living conditions, lack of economic
growth, and lack of a future.
>and secondly how can it be done
Practically? It CANNOT be done. Period. They have to control all
prices, wages, and other factors. However *no* governement can control
all prices (anything imported cannot be controlled, the government has
no authority over external imported products, such as energy, and raw
materials). The government must also control wages too to be able to
do this, so the ending result will be identical as if they didn't
control anything: people still would not be able to always get what
they want!
Instead, a more free and open market place is the most viable
solution. At times prices may seem high to consumers, but at other
times they will be low. There will never be a parity between wages and
goods/materials.
In the real world, fully half of the people earn less than half the
mean income level.
>btw is rein's meaning similar to control/guide
We got that at the beginning... 'control' was what you were saying.
There is no such thing as 'guide' when it comes to governement
regulations!
Rick Samuel - 23 Sep 2008 04:31 GMT
> Instead, a more free and open market place is the most viable
> solution. At times prices may seem high to consumers, but at other
> times they will be low. There will never be a parity between wages and
> goods/materials.
There is one solution to high prices that ALWAYS brings the price down.
High prices!