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{ 2008 11 09 }

WMR Consumer Breaks on Bread and Electricity

Article:

Consumer Breaks on Bread and Electricity

http://www.israelnationalnews.com/News/News.aspx/128297

Place: Israel

Key People: Ministry of Industry, The Bakers’ Union

Summary:
In the current times of economic distress, the Israel Ministry of Industry is lowering the price of “common bread” by ten percent. The Bakers’ Union is strongly against the lowering of prices. Before this, the Ministry already lowered electricity costs to lessen the burden on consumers.

Your Response:
It is interesting to look at how the economic crisis affects different countries across the world, and also what those countries’ governments are doing to try help their citizens. Israel’s response of lowering prices for “common bread” may not be the best idea. Generally when price ceilings are set the suppliers do not produce as much, so if the bakers do not feel they are making enough money with the lower prices then they may start making less bread and a shortage could occur.

Posted by Chase Potter on Sunday, November 9, 2008, at 4:09 pm. Filed under Economic Issues, Israel, NMH-PA Media Reports. Follow any responses to this post with its comments RSS feed. You can post a comment or trackback from your blog.

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