- cross-posted to:
- globalnews@lemmy.zip
- cross-posted to:
- globalnews@lemmy.zip
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Original titeling is bad. “Hungary announces food profit-margin cap after supermarket boycotts”, would be less emotionalised, IMO.
Yeah, a profit cap is a much different beast than a price cap.
Not really, especially since the government currently has a 31.5% tax on consumption.
This will cause both shortages and inflation, just like last time.
I know nothing about the Hungarian retail market, but as long as the country’s food producers and processors are coordinating price rises -which is what the article suggests- I doubt that this profit-margin cap will bring inflation down. Or is there something I don’t see?
[Edit typo.]
No, they’ve tried this before, it raised inflation as prices went up on everything not in the cap, and the stuff in the cap ran out in days.
It lets the average voter blame the retailers for prices instead of the government is all it does.
No, they’ve tried this before, it raised inflation as prices went up on everything not in the cap, and the stuff in the cap ran out in days.
Didn’t know that they tried this before, but the effect is absolutely predictable. This is neither a ‘price cap’ nor a ‘profit-margin cap’ imo.
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