We’re between the absurd and insane stage already, are we?

The UK Treasury is pushing large supermarkets to introduce voluntary price caps on key groceries in return for lifting some regulations, according to four people familiar with the situation.

Supermarkets have reacted furiously to the proposals, under which grocers would agree to identify and cap the prices of essential goods such as eggs, bread and milk.

Price capped goods disappear from the market.

Another way to make much the same point is that rationing by price will be replaced with rationing by queues. This is why we have a 1.3 million strong waiting list for council and social housing. People will queue for below market price goods. Which is why they disappear from the market, of course, demand is higher than supply.

As even George Eaton, formerly of the New Statesman (yes, the absurdity of the proposal is evident that far to the left) has pointed out if there really is concern over poor people not being able to afford food the answer is to give poor people more money.

Or as we’d put it, don’t mess with markets. Subsidise people in markets if need be but don’t mess with markets themselves.

In this particular instance even that’s not necessary. Just lift some of those regulations which cost so much and leave the market be.

The Chancellor has asked grocers to cap how much they charge shoppers for staple items such as bread, eggs and milk, in return for relaxing some red tape.

Why not just relax the red tape making food more expensive?

As so often the actual cure to this problem is for government to stop doing the things which cause the problem. Minarchy, it’s the only way….

Tim Worstall