In Mexico and Spain, leaders who have capped public costs have been rewarded at the ballot box. As another cost of living surge arrives, it may be a policy our leaders are unable to resist, says Guardian columnist Andy Beckett
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Graham Watson
onto Microeconomics: IB Economics March 27, 12:43 PM
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Guardian columnist, Andy Beckett, presumably taking a break from selling Socialist Worker on Regent Street, makes the case for the government directly intervening in markets to set maximum prices.
He points to the examples of Mexico and Spain where successive governments have been more interventionist. In Mexico, apparently, the government has capped the price of 24 essential goods, although he hasn't said anything about the availability or quality of such goods. Similarly, Spain's centre-left government has already introduced a national rent freeze and established a body to be known as the Business Margins Observatory to oversee markets and deter profiteering.
I wonder if you could both make a case for such interventions, and, a similar case for opposing them? Think in terms of the effect on economic efficiency, and the opportunity cost of such interventions.