RE:G7 Climate ClubSo in essence if they were to place a price cap on the underlying materials, the impact will be less products produced. Less products produced means less products available to the consumer. Consumers will still demand the products, therefore the distributor/retailer can raise the price of the product to whatever consumers are willing to pay. The outcome I see is consumers vying for a limited supply of products will enable distributors and retailers to charge more. Therefore while profits are capped on energy producers, the distributor/retail sector is set to continue pocketing huge profits. I undestand reducing consumer consumption is the goal, however I don't think most people are prepared for what's coming. Essentially a world where everything is prohibitively expensive.
Anyone else have a take on this insanity. In my experience any time govts try to manipulate market forces, it ends poorly for consumers.
Dogsbreakfast4U wrote: Looks like they are doubling down on their goal to "phase out" fossil fuel as in the next 13 years with dire consequences for us non elites. Price cap on energy is also very troubling for investors in the sector. I suppose that is also a means for them to scare capital away. In the meantime they are asking for more production of course. How come most so called democratic countries are now governed by a bunch of buffoons who all seem to be singing from the same song sheet?
https://www.cnbc.com/2022/06/28/g-7-leaders-to-set-up-a-climate-club.html
Published Tuesday, the document said leaders were committed to “a highly decarbonised road sector by 2030” as well as “a fully or predominantly decarbonised power sector by 2035.”
We will take immediate action to secure energy supply and reduce price surges driven by extraordinary market conditions, including by exploring additional measures such as price caps,” it said.