A few people have said that the response to inflation will be price controls eventually. Reviewing this article and comment section has convinced me that it is politically possible. Perhaps it’s a good time to remind people that inflation has happened many times in human history, as has price controls, and that the outcome will be shortages.
Right, the dynamic is that high prices are due largely to shortages. Increasing supply requires investment, so yes price controls would reduce profits, but at the cost of curtailing investment which will sustain shortages and high prices for longer.
It's certainly not great that profits have spiked, a chunk of that will get skimmed off for sure, but profits also do stimulate investment. The government can help by adjusting tax rates and incentives, but the best way to do that here is by encouraging investment not penalising profits. We want that money going to the right places for sure, but the money is needed.
