Rick Kelo - Pricing in Fascist Economies

Fascism is one of the two forms of Command Economy (the other being Socialism).  In his studies of economics Rick Kelo noticed that the price of consumer goods - the individual items that you and I buy at the store - are usually not controlled by the State.

Rick Kelo, a Chicago Tax Recruiter

"There have been a great many command economies where the State did not set the price of consumption goods.  Nazi Germany is one example as is the USSR through the majority of it's history, ignoring several lesser periods of price controls," Kelo remarks.

The price of consumption goods does not matter.  Not economically in any event.  In any command economy, whether socialist or fascist, there can never be rational pricing for consumer goods.  In Fascist economies State officials often tell the business owners what to produce.  Some times they do it directly by an order, and other times indirectly by a regulation that sets a production quota not to be exceeded.  However, business owners in a fascist economy can still look to other market economies for guides on pricing.  But, they can never actually know the proper price for consumer goods because they have no pricing for the capital goods that were used to make those consumer items.

It is because of the absence of a rational pricing mechanism, Richard Kelo feels, that we frequently see state-mandated prices for consumer goods in command economies.