The policy could amount to one of the country's largest government interventions in recent history, costing tens of billions of pounds and reducing prices on a wide scale.
as the Federal Reserve tries to slash price increases by slowing the economy and choking off demand. But the approach risks tipping the U.S. into an economic downturn and putting millions out of work.
The plan, which would go into effect next month and last two years, caps the annual cost of natural gas and electricity for a typical British household at £2,500. The plan would do the same for many non-domestic institutions, such as schools; but those price caps only last six months. "This is a huge piece of state intervention ironically overseen by a conservative government suspicious of the state," said Matthew Goodwin, a London-based professor of politics at the University of Kent.
"The reason why the U.K. policy is costly is because Truss is insisting that energy suppliers continue to be compensated at market rates," Singer told ABC News.Should a policy like this be implemented in the U.S.? "We absolutely should be pursuing these alternative remedies to address what many of us are starting to see now as the exercise of market power," he said. "There's a comparable crisis in the U.S. in terms of rents for apartments and homes."But Orazem sharply disagreed, saying that price controls would worsen the root problem behind inflation: a supply shortage.
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