Should the government intervene in fixing the products prices?

Should the government intervene in fixing the products prices?
Sep 26, 2007 21:22
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Recently, the soaring prices of food and other products has become a big concern in the economy development. Impacted by the food prices, the CPI has been jumping rapidly in recent months. In August, it reached 6.5%. Because of the skyrocketing food prices, those lower income people feel much pressure of living. In order to control the surging prices of food and other living necessities, both the central and local governments have made many policies to regulate the market and control the prices. For the ordinaries, this is really good and helpful. However, some people have doubts that whether the government should intervene in fixing the prices. In 1979, China adopted the policy of reform and opening up. Since then, China has stepped into its age of market economy. In the market economy, the price should be determined by the market. Usually, the government should not intervene in fixing the prices. It sounds reasonable. But some people argue that market economy should also be regulated, especially when people's interests are hurt. What do you think? Should the government intervene in fixing the prices or not?

Sep 26, 2007 21:22

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Recently, the soaring prices of food and other products has become a big concern in the economy development. Impacted by the food prices, the CPI has been jumping rapidly in recent months. In August, it reached 6.5%. Because of the skyrocketing food prices, those lower income people feel much pressure of living.

In order to control the surging prices of food and other living necessities, both the central and local governments have made many policies to regulate the market and control the prices. For the ordinaries, this is really good and helpful. However, some people have doubts that whether the government should intervene in fixing the prices.

In 1979, China adopted the policy of reform and opening up. Since then, China has stepped into its age of market economy. In the market economy, the price should be determined by the market. Usually, the government should not intervene in fixing the prices. It sounds reasonable. But some people argue that market economy should also be regulated, especially when people's interests are hurt.

What do you think? Should the government intervene in fixing the prices or not?

Sep 26, 2007 23:12	#1
ELLEN77 Points: Join Date: Feb 7, 2007 Status: Offline	It should not be answered simply by yes or no I think. On two occasions that the government can intervene, firstly, the price market is monopolied by some businessmen unlawfully; Secondly, some sudden economic phoenomenons, such as economic crisis, happen. we should know why the price is higher first.

Oct 8, 2007 02:23	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Ellen, good reply. It should not be answered simply by yes or no. But in such a situation, government interference is needed but not much because China's econmy is overheated and the inflation might occur.

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