PRICE CONTROLS WORK
“The biggest one that jumps out to me is the idea that a price control can function as a cost control. There’s a complete disconnect between some voters and the way in which pricing structures work. All you can really do by forcing mandates for costs are 1) force an oversupply of the good/service (if the fixed price is too high), 2) force shortages and perhaps a flourishing black market (if that price is too low), or 3) force inflation to percolate through the economy until the price actually makes sense. That last one is largely a reference to the minimum wage, and the idea that you can effect a change to standards of livings by forcing an increase in wages paid at the bottom.
Price controls of virtually any type strike me as a form of absurdity that should have been eliminated around the time that people stopped thinking the world was flat, and for about the same reason. Fixed exchange rates would also apply.”