Feb

2

A certain chair; price controls

February 2, 2024 |

The most bull thing of the month is that a certain chair would not be reappointed if there were a change in admins. Thus, the certain chair like anybody else will be extra vigilant to save his job by creating an ebullient picture in next 10 months.

How Price Control Leads to…Socialism, by Ludwig von Mises:

The government believes that the price of a definite commodity, e.g., milk, is too high. It wants to make it possible for the poor to give their children more milk. Thus it resorts to a price ceiling and fixes the price of milk at a lower rate than that prevailing on the free market. The result is that the marginal producers of milk, those producing at the high­est cost, now incur losses. As no individual farmer or businessman can go on producing at a loss, these marginal producers stop pro­ducing and selling milk on the market. They will use their cows and their skill for other more profitable purposes. They will, for example, produce butter, cheese, or meat. There will be less milk available for the consumers, not more.

Full treatise: The Middle of the Road Leads to Socialism

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