Policy: Arbitrarily set prices for foodstuffs based on what one set of damned fool know-it-alls (perhaps just a single know-it-all) think is "fair."
Result: Since prices can't rise and fall based on supply and demand, businesses stop selling and producers stop producing. In other words, shortages. If it goes on long enough, famine.
Reaction: Steal the stores.
It would be freaking hilarious if it weren't so damned depressingly familiar. In the early decades of the previous century, the poverty and suffering that inevitably result from command economies was easy enough to hide. In today's era? Not so much.
It's a simple principle, really. If you let the market set their own prices, some small number of people will always suffer. There can be spikes in suffering due to supply and demand issues, but the suffering tends to be fairly low. If you let the government control the prices, they just don't have the granularity of information nor the processing power to handle it. Therefore, many, many more people end up suffering. And the suffering takes much, much longer to end.
Posted by: ron on February 16, 2007 09:01 AM