Not a laughing matter

Reader comment on: Price Controls

Submitted by Harry Binswanger (United States), Feb 16, 2022 21:43

Kudos for understanding the economics of inflation (government expansion of fiat money). And double kudos for alerting us to the threat of price controls. But this is really horrible stuff. Inflation and price controls can bring a society down. Nixon's price controls were a spectacular disaster.

All price controls are not only economic suicide. They trash individual rights. All shortages that last more than a week are the consequence of price controls, including the current shortages due to break down of the supply chain. In a free market prices adjust to clear supply and demand, thus attracting capital into the production of what's in short supply, wiping out the shortage.

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