MARCH 16, 2013
Price control is mandated certain price level per unit. Governments or private entities might enforce price controls on a variety of goods and services including residential rents, food stuffs, wages for labor, and many more. Price controls can dictate either minimum or maximum prices. When the government enforces a minimum price, it can create a surplus of a good or service if that price is higher than the market price. Likewise, if the government enforces a maximum price that is lower than the market price, it will create a shortage of a good or service. In the former case, the government might initiate a program to buy the excess. In the latter case, the government might initiate a rationing program that limits consumer access to said goods and services.
Paul Cwik - Problems and Prices
Anthony Carilli - Austrian Economics: Praxeology, Supply, and Demand
Related Freeman Articles
DECEMBER 22, 2010
Price controls for health insurance.
FEBRUARY 25, 2010 by STEVEN HORWITZ
President Obama wants to empower the government to block insurance rate increases deemed unreasonable or excessive. This would combine two bad ideas: price controls and rejection of the rule of law.
OUR ECONOMIC PAST
Price Controls and Rationing Led to Law-Breaking and Black Markets
APRIL 24, 2009 by ROBERT HIGGS
All Price Controls Silence Truthful and Useful Messages
OCTOBER 01, 2002 by DONALD BOUDREAUX
APRIL 01, 1978 by LAWRENCE W. REED
The history of price control is the history of shortages, queues, and dissatisfied customers.
MAY 01, 1974 by GARY NORTH
Concerning the search in early New England for a "just price."
FEBRUARY 01, 1972 by PERCY L. GREAVES JR.
A timely reminder of the sorry consequences of closing the market.
OCTOBER 01, 1968 by EMERSON SCHMIDT
Recounting U. S. experiences under price control during and following World War II.
JUNE 01, 1966 by LUDWIG VON MISES
And Professor Mises explains precisely the sequence to absolute control when the government starts tampering with the market to help someone.