AFRICA
GOVERNMENT TRYING TO REGULATE FOOD AND MEDICAL SUPPLY PRICES DURING LOCKDOWN
This is coming. Be warned!
I just saw this on my Facebook timeline. Government is trying to regulate food and medical supply prices during the lockdown period.
This might seem like a good idea because it protects consumers against opportunistic price hikes. So far they’re using competition law, which is great, until they hit a point of desperation.
Should local and international supply chains be affected, we might start seeing retailers increase prices out of necessity to try and cover their costs.
In such a case, should government introduce price caps, this might result in retailers not being able to cover their cost of sales. There’ll therefore be no incentive for them to stock such items. This will result in empty shelves, long queues, rationing, starvation, and death.
Price regulation is a socialist intervention that always results in food shortages. If input costs go up to R10 to produce and sell an item, and government sets a price cap of R8 to protect the poor, it makes no sense for the retailer to stock and sell that item at such a low price because they’ll be operating at a loss. They’ll therefore just stop stocking and supplying it.
Any government that has gone anywhere near price controls has always resulted in shortages and empty shelves.
This usually happens with essentials such as bread, milk, sugar, and yes, toilet paper. If I were you, I’d start stocking up slowly on certain dry goods and non-perishables while they’re still available.
The ANC is essentially a socialist government that favours central planning and the suppression of human rights, enforcing draconian laws or imposing Martial Law is nothing to them. This is coming. Be warned!
This could very well be the meaning of the Word I received about DICTATORSHIP.
Glory to God!