How Can The Government Stop Businesses From Hoarding Products?

[Good-Person]

Hoarding of products and commodities could be more damaging to the economy than many people could think. The process of hoarding includes buying a massive bulk quantity of products and selling them at an incredibly high rate when the inflation rate increases. This actually makes inflation worse as the prices of commodity increases and the supply of products or goods decreases. A massive supply of products creates shortage and hoarding leads to a decrease in demand. This increases a massive gap between demand and supply. So, how can the government stop this?

 

[Kane]

In my home country, businesses are notorious for hoarding products and creating scarcity in the market, thus being able to raise the price of the product. There is a low that clearly states that this kind of practice is illegal but making a strong law has not stopped businesses to hoarding products.

 

[Good-Person]

In my home country, businesses are notorious for hoarding products and creating scarcity in the market, thus being able to raise the price of the product. There is a low that clearly states that this kind of practice is illegal but making a strong law has not stopped businesses to hoarding products.

Well, I think that this is one of the main reasons why economy of certain countries suffer. They not only withhold non-edible items, but they also tend to withhold edible items as well and wait for the prices to increase and this could cause many problems for many people.

 

[Heatman]

Hoarding of products and commodities could be more damaging to the economy than many people could think. The process of hoarding includes buying a massive bulk quantity of products and selling them at an incredibly high rate when the inflation rate increases. This actually makes inflation worse as the prices of commodity increases and the supply of products or goods decreases. A massive supply of products creates shortage and hoarding leads to a decrease in demand. This increases a massive gap between demand and supply. So, how can the government stop this?

The simple truth is that it is going to be very difficult for government to even stop businesses from doing this kind of a thing because it is their personal business and a business in which they are running with their private money and not government money.

 

[Mostee501]

To prevent businesses from hoarding products, the government can implement various measures and policies which are anti-hoarding laws, price control, public awareness campaigns, monitoring and enforcement.

 

[Kane]

Well, I think that this is one of the main reasons why economy of certain countries suffer. They not only withhold non-edible items, but they also tend to withhold edible items as well and wait for the prices to increase and this could cause many problems for many people.

Hoarding products is akin to black marketing. Hoarding products is different from stockpiling your inventory. Hoasting means you are keeping products in your warehouse and creating artificial scarcity in the market so that you can sell for higher prices. Even though there are laws, the governments are completely unable to stop businesses form hoarding products.

 

[Syldan]

The process and effect of hoarding depends on the good or bad governance and for government to controls such issues they most very very strick in their laws concerning the buying and selling by small scale owners.