Archive for November 2nd, 2012

Thomas Sowell on the effects of price controls:

Of course people did not want to hear what the prices were telling them.

You reduce the supply of whatever is being controlled, not surprisingly because people will do less when they are paid less. Furthermore, you reduce the quality of what is being controlled because higher quality is costlier than lower quality.

Berlin had recovered from the bombing but the Bronx had not recovered from rent controls.


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