More Explanations of the Reasons for Prices
and the effects of Price Controls 


Consider this policy aimed to help workers at the bottom of the income distribution:

1. A wage subsidy for unskilled workers, paid for by
2. A tax on employers who hire unskilled workers.
Now ...  you might wonder about the logic of part 2 of this proposal. ...  Haven't heard of it?  It's called an increase in the minimum wage.-- Greg Mankiw, HERE
What if the government passed a law saying that US families were only allowed to adopt foreign children if they did so at least 15 kids at a time? What if the government then passed a law saying that if anybody decided to donate food (or cash) to people begging on the street, the contribution had to be worth at least $15? What if control freaks got laws passed forcing you to do ANYthing only a certain way?  Answers: HERE

"Minimum wage laws cause unemployment.  I see this all the time
with my own eyes]." -- Larry Lawver, HERE

A new National Bureau of Economic Research Study Shows 
Employment Falls When the Minimum Wage Goes Up HERE

See: PRICES ARE NOT ARBITRARY: They reflect reality, inform consumers & producers & provide appropriate incentives for appropriate action HERE.
The minimum wage has a dark, racist history. The irony is: Its malicious intent Ladder of
                          success with bottom rungs missing (THAT's what
                          min. wage laws are)is being realized today. albeit unwittingly.  Click HERE to read the article.

Find 5 charts correlating minimum wage laws with minority employment HERE.
So-called "minimum wage laws" are shown to be a curse by Walter Williams HERE, by Thomas Sowell HERE and HERE, by Don Luskin HERE, by Larry Lawver HERE, by Mark Tier HERE, by W. J. Rayment HERE, by Dale Amon HERE, by Robert Meyer HERE and by Jim Cox HERE.

Find lots more articles HERE
"When the price of anything, including labor, goes up, the quantity demanded goes down, other things constant.... Workers cannot be paid what they havenít first produced." -- James A. Dorn, HERE    


Nobel Laureate Dr. Milton Friedman on Minimum Wage Laws:
                          Laureate Milton Friedman, PhD

Don Boudreaux shows how rent controls violate common sense HERE.


The Cocaine Price Support Program

So-called "price gouging" in emergencies is shown to be a blessing by Walter Williams HERE, HERE, HERE and HERE, by John Stossel HERE and HERE, by Alex Epstein HERE, Sheldon Richman HERE, by Russ Nelson HERE, Dimitri Vassilaros HERE, by Frank Bubb HERE, by John Lott and Sonya Jones HERE, by Gary Wolfram HERE, by George Reisman HERE, and amusingly by Don Lloyd HERE. The MORALITY of "gouging"is discussed by David Holcberg HERE and by Nick Provenzano HERE.

Stupidity Watch:  The New York Times' so-called "economics" columnist demonstrates his massive ignorance (and/or his evil agenda) in the most humiliating way possible -- in public -- big time (again) HERE.

Did you know that capitalism has planning?  Yes, it does.  In fact, it has THE very best planning of all.  It's explained in: "CAPITALIST PLANNING AND THE PRICE SYSTEM" (from Chapter 5 of Capitalism: A Treatise on Economics by George Reisman) HERE or HERE.

"How REPEAL OF RENT CONTROLS Would Restore Harmony Between Landlords and Tenants" (from Chapter 7 of Capitalism: A Treatise on Economics by George Reisman) is HERE


"WHY RENT CONTROL IS IMMORAL" by Michael Berliner is HERE.

Here are observations on the history of Santa Monica's rent control laws.

"Economic Thoughts, Part XV: CONSEQUENCES OF PRICE CONTROLS" by Donald B. Hawthorne is HERE

"PRICE CONTROLS" by Hugh Rockoff from The Concise Encyclopedia of Economics is HERE

"MINIMUM WAGES" by Linda Gorman from The Concise Encyclopedia of Economics is HERE


"HOW ECONOMISTS THINK" and "PRICE THEORY -- WHY IT MATTERS" (Chapter 2 of Price Theory: An Intermediate Text by David Friedman) is HERE.

HERE, HERE, and HERE (html).

A large collection of quotations about price controls is HERE.  And another one is HERE.

Some commentaries on how electricity price controls cause blackouts are HERE.

A comment on a leading newspaper's typical treatment of price controls is HERE.

LFB's bibliography of books which include analyses of price controls is HERE.


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"One of the key aspects of a market economy is that it efficiently sends resources where they are most valued." -- Gary Wolfram
"Price gouging laws exist for one reason ... to give these politicians bragging rights.  While the politicians boast, the price gouging laws work to ensure a shortage of essential goods and services in the stricken areas.  Some people think that the laws of supply and demand should only be allowed to work for items that people don't actually need." -- Neal Boortz
"Competition ordinarily pushes price down to marginal cost, paying no heed at all to costs that were sunk years ago." -- Peter Huber
"Certain kinds of economic controls tend to paralyze the driving forces of a free society." -- F.A. Hayek
"The existence of a price doesn't imply a supply." -- Don Lloyd
I pledge allegiance to the curve
Of supply and demand in equilibrium
And to the principle for which it stands
Market pricing, with low transaction costs
Yields utility and profit for all.
                       -- Alex "Thoreau" Small
"Sociotropic voters with biased economic beliefs are more likely to produce severe political failures than are selfish voters with rational expectations." -- Bryan Caplan
"Economics is that way of understanding behavior that starts from the assumption that people have objectives and tend to choose the correct way to achieve them." -- David Friedman
"Confronted with economic problems, politicians always blame the private sector first ... [even] blaming the problem on the solution."  --Richard L. Gordon
"Minimum-wage laws are one of the most powerful tools in the arsenal of racists." -- Dr. Walter E. Williams, June 13, 2002
Consider this policy aimed to help workers at the bottom of the income distribution:

1. A wage subsidy for unskilled workers, paid for by
2. A tax on employers who hire unskilled workers.

Now ...  you might wonder about the logic of part 2 of this proposal. ...  Haven't heard of it? It is called an increase in the minimum wage.
-- Greg Mankiw, HERE

"Minimum wage hikes destroy jobs." -- Larry Elder
"If you subsidize something, people want more of it." -- Alan Reynolds
See how politicians' razzle-dazzle "item-pricing" laws hurt consumers HERE.
"Men aren't fools; when it's raining soup, they have sense enough to grab a bucket." -- Michael Miller
Robert Hessen provides a truly brief synopsis of the history of capitalism HERE
and one of the history of corporations HERE.
Introduction to the basics of economics

            minimum wages is supporting higher unemployment



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