Sen. Joe Manchin has agreed to support a "Build Back Better" lite that proponents claim will reduce inflation, give us better weather, and "pay for itself" through price controls and taxes. Perhaps we should be wary of such political "victories" for the political elites.
Rent control was imposed in Stockholm to "stabilize" the housing market. Not surprisingly, "stabilization" has meant housing shortages and years-long waits for available apartments.
Last year, Joe Biden and his administration claimed that inflation was "transitory." This year, Vladimir Putin gets the blame. Next year, Biden will blame American businesses. And the beat goes on.
While government officials and politicians denounce high drug prices, they have created monopoly privileges for drug firms, thus ensuring higher-than-competitive prices for pharmaceuticals.
People often react to sudden price changes by demanding that government "do something" to bring prices down. It is important to understand the mentality behind such beliefs.
Price controls, or antigouging laws, discourage innovation and sometimes can lead to supplies of goods and services being directed to other markets. In other words, price controls lead to shortages.
