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Fidesz’s Price Caps: A Masterclass in Economic Suicide

  • Writer: Mark Sarkadi, MBA
    Mark Sarkadi, MBA
  • Mar 15
  • 4 min read

Updated: Mar 31


So, here’s the latest episode of "How to Tank an Economy in Real Time." The Hungarian government just pulled another "let’s fix inflation by brute force" move by introducing price caps and capping supermarket profit margins to 10% on basic food items. That’s right, boys and girls, a big fat mess incoming.


This kicks off March 17, 2025,


so mark your calendars. That’s the day when supermarkets will suddenly start “mysteriously running out” of certain products, smaller stores will begin shutting down, and your grandma will have to elbow-fight a dude in a tracksuit for the last loaf of bread.


Unfortunatly I know that mosth people won't get why this Is a horrible f*cking idea. So it is time for what I call:


✨💖 Basic economic moments with Bearman Brothers 💖✨

* Read that with a cute jingle in your head *


If you’ve ever played Monopoly, you know you can’t just set prices and expect shit to work. Governments love acting like they’re running SimCity, thinking they can tweak numbers and everything will be fine. Here’s what actually happens when you put a profit cap on businesses:


1. Supermarkets stop stocking unprofitable products

If a store can only make 10% on milk but can make 20% on soda, guess what? More Coke, less dairy. Shelves will magically clear out on the "price-controlled" items, and people will suddenly start seeing "out of stock" signs everywhere.


2. Producers get screwed, farmers get wrecked

Since supermarkets can’t squeeze more out of their margins, they’ll start pushing farmers and suppliers to lower their prices. Hungarian farmers, who are already barley surviving, will now get even lower prices for their goods.


3. Investment f*cks off elsewhere

If you were a big international supermarket chain (think Aldi, Lidl, Tesco), and you saw a government randomly deciding your profits, would you invest more in Hungary? Nope. Less investment → Less competition → Higher prices after the cap is lifted. Congrats, you played yourself.


Dj Khaled saying: congratulations you played yourself gif


Now, let’s get into some basic economics, because apparently, a lot of people skipped that class, yet they are the loudest and proudest voices when it comes to politics.


There are two main ways governments like to mess with the economy:


1. The Classical Approach (Laissez-Faire, aka "don’t touch sh*t")

This school of thought says, let markets work. Businesses adjust, prices find their own levels, and the invisible hand does its thing. This is how free markets operate. If a product is too expensive, people stop buying it, and suppliers lower prices. Simple.


2. The Keynesian Approach (Stimulus, aka "let’s fix sh*t")

John Maynard Keynes, aka the OG spender, believed that sometimes governments should step in—like during recessions—to stimulate demand. This means tax cuts, direct spending, or central bank tricks to keep money flowing. Keynes was a smart dude, so you notice that not even him and his approach says: "cAp sUpErMaRkEt pRoFiTs aNd cAlL iT a dAy."


the economy is burning, shelves in the supermarket are empty, out of stock sign on cheese, egg, butter, and other food items. Viktor Orbán is dancing

Overregulation and price caps: the slow death of an economy

The more you segment and micromanage an economy, the worse it gets. Governments love "fixing" one problem by creating three new ones. Instead of doing useful shit like reducing taxes on food or fixing supply chains, they just slap on a new rule and act like it won’t cause a butterfly effect of stupidity.



What happens next?

Here’s a prediction you can take to the bank:

  • Supermarkets will cut corners.

  • Farmers will get screwed.

  • Shortages will appear.

  • Some opportunists will make a fortune flipping price-controlled goods.

  • Eventually, the government will have to remove the cap, and prices will spike even harder than before.

And when that happens, they’ll act shocked, like they didn’t just take a baseball bat to the economy’s knees.


💖💖 A lovely message to "Fidesz Economics" supporters 💖💖


Listen, I know some of you out there love government intervention. You probably think “It’s for the people! We must control greedy corporations! ”Here’s a thought: Go and watch one simple youtube video on basic economics. If you really believe that price controls work, please explain why every country that has tried them has turned into a dumpster fire. Venezuela did price caps. Now they have people eating out of trash cans. The Soviet Union had price controls. They had bread lines for decades. Hungary keeps trying this same brilliant idea, and every time it ends in higher prices, fewer goods, and more government excuses.


If you don’t understand basic supply and demand, don’t talk about economics. Just stick to watching whatever pro-government TikTok influencers are telling you how great everything is while you struggle to afford butter.



Hungary’s economic "strategy" is like watching a drunk guy try to parallel park

I don’t know who the hell is advising these people, but every move Hungary’s government makes lately feels like watching a dude on a 3-day booze bender trying to park a car—every correction just makes it worse.


So here’s the playbook they should follow (and it's not coming from me it's coming from everyone who has attended even one lecture of economics 1 in high school and or has some common sense):

  1. Cut food-related taxes instead of capping profits.

  2. Reduce regulations on food imports to increase supply.

  3. Stop f*cking micromanaging the economy like a neurotic casino owner.


But nah, they won’t. because control over logic wins again. So, get ready for more empty shelves, struggling farmers, and new conspiracy theories about how "greedy retailers" and the EU are causing all this.

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Bearman Brothers is for informational and entertainment purposes only, nothing here is financial advice. Always do your own research before making investment decisions, and I may hold positions in the stocks or assets discussed. For more information read our privacy policy

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