more price controls in action



Of course the reason is price controls. Everywhere and always they cause shortages. This is because people consume more of something the lower the price is. At a price lower than the natural market price, more people want to consume that good than there are goods to go around. If you had a pizza with 10 slices, 10 people in line, and told everyone that each slice was 10 cents, how much would the last person get? Multiply that by 2.9 million and you have Venezuela.

The US imposed price controls in the 1980s on gasoline. Price controls were placed on gasoline after hurricane Katrina. Soviet Russia and Red Germany set prices. The results were always the same: long lines and harsh shortages. The government creates this misery.

And now for the funniest line of the article:


The scary “lets run them out of toilet paper” plot.

Also remember this news story.

About christopher fisher

This entry was posted in Econ 101, Economics, Goverment. Bookmark the permalink.

1 Response to more price controls in action

  1. Pingback: price controls topple regime | reality is not optional

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