Post by Logan on Apr 23, 2016 2:00:57 GMT -6
V.I. Government-mandated price controls likely would have unintended consequences including shortages and business closures
Once again, a high-ranking government official comes out with a proposal that sounds as if it will really help local shoppers. The problem is that it is probably illegal and definitely stupid to enact price controls on food and fuel, as the Commissioner of Licensing and Consumer Affairs has proposed.
Local shoppers seem to believe that food and fuel in the rest of the world is much cheaper than it is on St. Thomas. It is just not true. Anyone that has travelled to the states and looked closely at prices there will conclude that the cost of items in the Virgin Islands is not unfair, given the issues of doing business in the Virgin Islands.
We all know the issues, but shipping costs are only one of the many factors that go into the cost of products, for example: Excise Tax, Gross Receipts Tax, Payroll Tax, etc., sky-high electricity bills, generator costs, insurance, etc.
Even if one thinks that this is not true, price controls are not the answer. Are we going to leave it up to a government employee to decide what a fair price for various commodities should be? We live in a capitalist society that depends on competition, among other things, to “control” prices. Perhaps Commissioner Devin Carrington should try opening a food or fuel business on St. Thomas and offering those items at a lower price. Good luck !
Read more: www.virginislandsdailynews.com/opinion/letters_to_editor/v-i-government-mandated-price-controls-likely-would-have-unintended/article_a8dd7ef8-ddaf-53cf-9a3a-4c8e1da4dec0.html
Once again, a high-ranking government official comes out with a proposal that sounds as if it will really help local shoppers. The problem is that it is probably illegal and definitely stupid to enact price controls on food and fuel, as the Commissioner of Licensing and Consumer Affairs has proposed.
Local shoppers seem to believe that food and fuel in the rest of the world is much cheaper than it is on St. Thomas. It is just not true. Anyone that has travelled to the states and looked closely at prices there will conclude that the cost of items in the Virgin Islands is not unfair, given the issues of doing business in the Virgin Islands.
We all know the issues, but shipping costs are only one of the many factors that go into the cost of products, for example: Excise Tax, Gross Receipts Tax, Payroll Tax, etc., sky-high electricity bills, generator costs, insurance, etc.
Even if one thinks that this is not true, price controls are not the answer. Are we going to leave it up to a government employee to decide what a fair price for various commodities should be? We live in a capitalist society that depends on competition, among other things, to “control” prices. Perhaps Commissioner Devin Carrington should try opening a food or fuel business on St. Thomas and offering those items at a lower price. Good luck !
Read more: www.virginislandsdailynews.com/opinion/letters_to_editor/v-i-government-mandated-price-controls-likely-would-have-unintended/article_a8dd7ef8-ddaf-53cf-9a3a-4c8e1da4dec0.html