Price control Essay Example | Topics and Well Written Essays - 500 words

Price control - Essay Example The opinion of the College of Physicians was based on the fact that it would be better to self-impose limits instead of letting the insurance companies determine the income the industry would generate. In 1989 Argentina impose price controls on all goods and service in an attempt to stop the rampant inflationary forces. The government called the new system "managed prices" and in order to raise prices businesses had to ask permission from the government to do so. Prior to the new rules the price of food items had tripled in the previous weeks. In 1992 China eliminated price controls on food items in a rational move towards moving its economic system to assimilate more a free economy. It eliminated price controls on meats, eggs, and grain. The move hurt the civilian population as the price of meat which was undervalue went up 40% instantly after the government eliminated price controls on food items. At the beginning of the 21st century the Irish government considered imposing price controls on rents and housing prices due to high inflation in this economic sector. In 2001 California and Nevada impose price controls on wholesale electricity prices. The move caused some generators to withhold supplies, which created power shortages that caused stage 2 alerts. The Bush administration through this initiative capped excess profits on energy producers. Price controls are a common practice in the petroleum industry. In 1988 the U.S. government charged the Texaco Corporation with a penalty of $1.25 billion for violations of price ceilings on the sale of wholesale crude oil. Price control regulations have not been effective at maintaining the price of gasoline down in the 21st century. In 1999 the state legislature of the State of Maine was considering either imposing price ceiling on prescription drugs or realizing mass purchases in order to lower the price of medicine for poor people. One of the worst cases of