Pohjahinnat

Pohjahinnat, often translated as "floor prices" or "minimum prices," refer to the lowest price at which a product or service can be sold. These prices are typically set by a government, a regulatory body, or an industry association. The primary purpose of establishing pohjahinnat is to protect producers from excessively low prices that could lead to financial ruin or discourage production.

These mechanisms are commonly employed in agricultural markets. For example, a government might set a minimum price for milk or grain to ensure that farmers can cover their production costs and maintain a stable income. Without such support, farmers might be forced to sell their produce at prices below their expenses, especially during periods of oversupply. This can lead to a decline in domestic production and increased reliance on imports.

Pohjahinnat can also be used in other sectors. In some countries, minimum wages can be seen as a form of pohjahinta for labor. While the concept aims to provide a safety net for producers, it can also have unintended consequences. If pohjahinnat are set too high, they can lead to higher consumer prices, reduced demand, and potentially surpluses that the government might have to buy up. Critics argue that such interventions can distort market signals and lead to inefficiencies. The effectiveness and desirability of pohjahinnat are often subject to debate among economists and policymakers.