Posted on 11/25/2024 10:03:57 AM PST by Retain Mike
Price and wage fixing is always harmful. There is no right way of doing it. There is no right way of doing a wrong thing. There is no fair way of doing something that oughtn’t be done at all. We can’t even define a fair price or a fair profit or a fair wage apart from the market or apart from the state of supply and demand. Instead of talking about “fair” prices, “fair” profits, and “fair” wages, we ought to be talking about functional wages, functional prices, and functional profits. Prices have work to do. What they do in effect is give the necessary signals to production. They direct production into the things that are most wanted socially, to provide a balance among the thousands of different commodities and services in the proportions that the consumers want them.
Price and wage fixing is always harmful. There is no right way of doing it. There is no right way of doing a wrong thing. There is no fair way of doing something that oughtn’t be done at all. We can’t even define a fair price or a fair profit or a fair wage apart from the market or apart from the state of supply and demand. Instead of talking about “fair” prices, “fair” profits, and “fair” wages, we ought to be talking about functional wages, functional prices, and functional profits. Prices have work to do. What they do in effect is give the necessary signals to production. They direct production into the things that are most wanted socially, to provide a balance among the thousands of different commodities and services in the proportions that the consumers want them.
(Excerpt) Read more at imprimis.hillsdale.edu ...
The US tried price controls back in the mid 1970s. Remember WIN! ( Whip Inflation Now!) It didn’t work.
Yes. They mention that in the article.
Price controls inevitably produce shortages and even rationing. Anyone remember the long lines for gasoline in the 70s with odd/even day sales and gallon limits?
Exactly. We suffered through years of it.
Those who forget history are doomed to repeat it (paraphrasing).
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