Home > Income Distribution, International Trade, Microeconomics, Tax Policy > The Effects of Government Price Controls, Part 2

The Effects of Government Price Controls, Part 2

It looks like Argentina is looking to, um, a neighboring country to the north for economic models to follow. Good luck with that.

A day after reporting the highest inflation in over a decade, Argentina’s government fined several retail chains, including France’sCarrefour SA and U.S.-based Wal-Mart Stores Inc., for failing to stock certain price- capped products.

Commerce Secretary Augusto Costa said, in a presentation to reporters, the government fined Carrefour about $ 167,000 and Wal-Mart around $77,500. The companies were allegedly found to have an incomplete stock of certain products that they agreed to sell at capped prices. Changomas, also owned by Wal-Mart, was fined about $41,000. Other local retail firms were also fined.

Once again, government officials show they lack a basic understanding of economics, and the result hurts the very people it intended to help.

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