Specialist: the support price does not reflect the real value of goods and services

Specialist: the support price does not reflect the real value of goods and services

12/14/2013 0:00

BAGHDAD - Hussein al-Tamimi Tgb often contribute to the policy of price support in activating the economic sector target, and sometimes gets confusing and clear operations balance between supply and demand in the local market and the resulting problems. Alkhbayralaguetsada Dr. Jamil al-Dabbagh said that the adoption of the policy of price support withstand the effects of directly on the movement of goods within the local market. In line with economic trends, the presence of prices fixed outside the scope of supply and demand of the consumers and producers do not reflect the economic value of goods and services. added during his speech at an economic seminar attended by «morning« to address the issue of system support Price shows us a number of effects on the economy, which suffers an imbalance in its different sectors in forefront of inefficiency in the allocation of economic resources as a result of the imbalance in the relationship between the triangle formed by the costs of production and prices, and that's where the support leads to a surplus for exhibitions supported it leads to inflated demand through low-priced goods subsidized and thus the loss of the standard rationalization of consumption or use. had been between Dabbagh in an interview that the price support does not represent the fact that the forces of supply and demand that result in real economic price based on real costs. Therefore, the application of price support system resulting logistical problems. Or what we call not to balance the market and perhaps the most important of which is that the subsidized prices for real Aasaha give signals to consumers. Indicating that the level of current consumption to Aaoizi level of real consumption. In light of the economic prices, the mouthpiece of the interaction of the real forces of supply and demand on the state of a commodity or service in light of the market economy. , and pointed out that the problems arising in the market under the price support system application such as placing low prices for fuel, which leads to a scarcity of formal presentations. Because of the wastage in use and thus the emergence of the black market. What applies to the fuel also applies to consumer goods like commodities or production of food or other supplies industrial or agricultural production. While that such imbalances have existed since the previous era and still continues to support policies such goods or supplies productivity but more distorted. between the price support carries a lot of economic and social changes resulting from the adoption of the strictest policies of the various methods of central planning, which was followed in the socialist countries Previous. He pointed out that the variables can be classified as totals for the first of the factors related to the policy of price support itself contradictory organically with economic policies and factors relating to the categories or target groups to apply policies of price support. mentions that the policy of price support must be coupled with the strengthening and activating the institutions of the social system and pension funds to ensure install the purchasing power for the salaries of social groups within these categories, which Stffersha operations within the structural reforms, privatization of the Iraqi economy. As well as to establish an effective mechanism to reduce inflation to all segments of society, especially the low-lying entry categories and utilize the process of international donations to alleviate its social effects.

[You must be registered and logged in to see this link.]