To explain why politicians should not interfere with prices, I’ve shared videos from Marginal Revolution, Don Boudreaux, Learn Liberty, and Russ Roberts. To add to that collection, here’s part of a lecture by Professor Antony Davies. The bottom line is that price controls have a history of failure, anywhere and everywhere they’ve been tried. ...........
- They have led to catastrophic outcomes when implemented as part of command-and-control socialism, as we saw in the Soviet Union and Maoist China.
- They have produced terrible consequences when imposed on an economy-wide basis to ostensibly fight inflation, as was the case in post-war West Germany and in the United States with the (pro-statism) Nixon Administration.
- And they have generated awful results when politicians interfere with prices in specific sectors of the economy (rent control, community rating, minimum wages, gouging laws, etc).................
P.S. Politicians in Washington want to impose price controls
on the pharmaceutical industry. That concerns me since I’m getting
older and might be in a position where I would benefit from new
therapeutics. But companies will have much less incentive for research and innovation if government makes it very difficult to make money............To Read More.....
No comments:
Post a Comment