Sheep applauding today price controls are the ones who will shout tomorrow for not finding anything on supermarket shelves. I assume they know nothing about economics, so I will explain it in an easy way, then in the actual way.
#Lebanon #كلن_يعني_كلن
[sorry for the tone]
#Lebanon #كلن_يعني_كلن
[sorry for the tone]
Supermarket X has 5 Coffee Mates on the shelve. Wannabe superhero Y forces X to lower the price of Coffee Mate. X sells the 5 at lower price, and to replace them, X can only buy 3. In 2 weeks, X sells the 3 and to replace them, X can only buy 1. X sells the 1 then closes forever.
The [easy] economic approach (1/3):
X wants to import Coffee Mates.
Y sets a below-market price for Coffee Mates.
X realizes that selling Coffee Mate isn't profitable.
X decides to stop importing Coffee Mates.
No more Coffee Mates on shelves.
X wants to import Coffee Mates.
Y sets a below-market price for Coffee Mates.
X realizes that selling Coffee Mate isn't profitable.
X decides to stop importing Coffee Mates.
No more Coffee Mates on shelves.
The economic approach [continued] (2/3):
Z decides to manufacture Lebanese Coffee Mate.
Z realizes that prime matter is dollarized.
Z receives dollars from Superhero Y at good LBP rate.
Z's products are now found on X's shelves.
Supermarket X sells Coffee Mates at Y's price.
Z decides to manufacture Lebanese Coffee Mate.
Z realizes that prime matter is dollarized.
Z receives dollars from Superhero Y at good LBP rate.
Z's products are now found on X's shelves.
Supermarket X sells Coffee Mates at Y's price.
The economic approach [the collapse] (3/3):
X orders another batch of Lebanese Coffee Mate.
Z asks Y for dollars.
Y has very few dollars and won't give them for non-essential things like Coffee Mate manufacturing.
No more Lebanese Coffee Mate.
No more Coffee Mate in Lebanon.
X orders another batch of Lebanese Coffee Mate.
Z asks Y for dollars.
Y has very few dollars and won't give them for non-essential things like Coffee Mate manufacturing.
No more Lebanese Coffee Mate.
No more Coffee Mate in Lebanon.
Stop price controls. Stop turning Lebanon into Venezuela. Defend business owners and hunt those who caused Lebanon and the Lira to collapse. #كلن_يعني_كلن
Small thread about price controls for dummies @GinoRaidy @dan_azzi @AndyKhalil1 @HuseinNourdin @Decafquest @Mohdfaour89 @wael_atallah @LeNajib @OmarTamo19 @khouryrt @lebfinance @JeberBarreto @Omar__AJ
FYI if one day you stop finding regular Pepsi on shelves and only Diet/Max versions, or if regular Pepsi becomes more expensive than Diet/Max, then don't be surprised. Those grams of [imported] sugar will become far more expensive than those milligrams of sweeteners.
