Summary
What do you think about people who keep promoting ideas that have been tried and have failed innumerable times over the last couple of thousands of years? I refer to members of the U.S. Congress - the same crowd whose foolish acts have given us the current economic mess - but their hubris never ends.
Price controls never work because they deny economic participants the necessary information to properly allocate scarce resources and motivate people to produce needed goods and services. The Roman Emperor Diocletian (fourth century B.C.) tried price controls with food grains, and they, of course, failed. President Nixon tried them, and economists now agree they laid the groundwork for the post- 1973 decline in U.S. production workers' real wages.See the full content of this document
Extract
Really Bad Ideas
President Jimmy Carter tried them, and the results were billions of wasted hours of people waiting in gas lines. Most recently, Hugo Chavez in Venezuela has imposed them on food prices, including chickens. Th...
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