<blockquote>
  <p>Why cant America set prices by law; and then print money and give it to those who qualify  </p>
  
  <blockquote>
    <p><strong>This is the main question</strong></p>
  </blockquote>
</blockquote>

<p>So the Fed along with the US government declares that it will start controlling the prices within the US territory. There will be some simple consequences to this decision,  </p>

<p>$1)$ Investors who invest in enterprises and corporations, big and small will run away, literally run away. This will drive the investments at an all time low. Ask yourself, why would anyone invest their hard earned cash in the US if they would not be allowed to enjoy the profits. After all, profits revenues and other benefits are a result of price flexibility.  </p>

<p>$2)$ No price means no profit, means no investment means soon many private entities will either stop functioning or just find some other country to move to. If there are no other entities to tax on, whom will the government tax on.  </p>

<p>$3)$ If prices remain fixed, then who will the government give its money? Who will even want the money. What good use is the money if an individual cannot buy or sell, in short have any purchasing power.  </p>

<p>Here you go, <a href="http://www.socialstudieshelp.com/economics_basic_concepts.htm" rel="nofollow noreferrer">http://www.socialstudieshelp.com/economics_basic_concepts.htm</a></p>

CC BY-SA 3.0
2018-01-24T05:54:11.620Z
Investors will not run away the corporations would sell more goods because people will have more money.  One of the benefits to setting prices is that the poverty line will be raised to $50,000 with the frozen prices as of 2018.  Enjoying the us will still be the same except more money will be in peoples pockets.  As far as going to another country is concerned why would they if the people get into a qualified job and make more than they would have otherwise.  The national debt would be paid.  SS would never run out of money.  And single moms, for example, would have more money to spend on ...
Jeremy Stoneberg
CC BY-SA 3.0
2018-01-24T06:00:02.143Z
Dude if government is controlling the prices and the distribution of money itself; then why would anyone hold that money. People would start stockpiling commodities and other stuff. If there is no difference between prices then how will there be transactions. The incentive structure itself will collapse
Kir'Shara
CC BY-SA 3.0
2018-01-25T21:43:07.127Z
@JeremyStoneberg There is a long history of government trying to set prices. It never comes out well and always ends up with shortages and economic stagnation or collapse.
zeta-band
CC BY-SA 3.0
2018-01-23T10:09:02.763Z
2018-01-23T10:09:02.763Z
Kir'Shara
<p>If it's illegal to raise certain prices when there's a lot of money in circulation, demand exceeds supply and there are shortages. That can be a problem even without adding more money. This has occurred in some natural disasters, when the law has called prices; and rent controls have had these effects too.</p>

<p>Compare to UK WWII rationing, where limited supplies were distributed fairly to prevent starvation. Customers had restricted buying power regardless of funds </p>

CC BY-SA 3.0
2018-01-23T07:30:59.893Z
2018-01-23T07:30:59.893Z
J.G.
<p>Why cant America set prices by law, which would establish the value of the dollar within its borders and then print money and give it to those who qualify.  Making deals with some of those who are over seas could be made with the people who import goods into the USA.</p>

<macroeconomics>
printing money after making the value by setting prices by law
Jeremy Stoneberg
# printing money after making the value by setting prices by law

(Asked by: username_0 on 2018-01-23)

Why cant America set prices by law, which would establish the value of the dollar within its borders and then print money and give it to those who qualify. Making deals with some of those who are over seas could be made with the people who import goods into the USA.

**Tags:** macroeconomics


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## 2 answers

### Answer by username_1 on 2018-01-23. Score: 2 | Accepted answer

> Why cant America set prices by law; and then print money and give it to those who qualify
>
> > **This is the main question**

So the Fed along with the US government declares that it will start controlling the prices within the US territory. There will be some simple consequences to this decision,

$1)$ Investors who invest in enterprises and corporations, big and small will run away, literally run away. This will drive the investments at an all time low. Ask yourself, why would anyone invest their hard earned cash in the US if they would not be allowed to enjoy the profits. After all, profits revenues and other benefits are a result of price flexibility.

$2)$ No price means no profit, means no investment means soon many private entities will either stop functioning or just find some other country to move to. If there are no other entities to tax on, whom will the government tax on.

$3)$ If prices remain fixed, then who will the government give its money? Who will even want the money. What good use is the money if an individual cannot buy or sell, in short have any purchasing power.

Here you go, <http://www.socialstudieshelp.com/economics_basic_concepts.htm>

> **Comments:**
> **username_0**: Investors will not run away the corporations would sell more goods because people will have more money.  One of the benefits to setting prices is that the poverty line will be raised to $50,000 with the frozen prices as of 2018.  Enjoying the us will still be the same except more money will be in peoples pockets.  As far as going to another country is concerned why would they if the people get into a qualified job and make more than they would have otherwise.  The national debt would be paid.  SS would never run out of money.  And single moms, for example, would have more money to spend on ...  
> **username_1**: Dude if government is controlling the prices and the distribution of money itself; then why would anyone hold that money. People would start stockpiling commodities and other stuff. If there is no difference between prices then how will there be transactions. The incentive structure itself will collapse  
> **username_2**: @username_0 There is a long history of government trying to set prices. It never comes out well and always ends up with shortages and economic stagnation or collapse.  

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### Answer by username_3 on 2018-01-23. Score: 0

If it's illegal to raise certain prices when there's a lot of money in circulation, demand exceeds supply and there are shortages. That can be a problem even without adding more money. This has occurred in some natural disasters, when the law has called prices; and rent controls have had these effects too.

Compare to UK WWII rationing, where limited supplies were distributed fairly to prevent starvation. Customers had restricted buying power regardless of funds


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