Price Controls, the Lessons of History Unlearned
Thomas DiLorenzo on the history of price controls.
The last time that a Congress actually learned from experience.--
Pennsylvania specifically imposed price controls on "those commodities needed for use by the army," creating disastrous shortages of everything needed by the army. The Continental Congress wisely adopted an anti-price-control resolution on June 4, 1778 that read: "Whereas it hath been found by experience that limitations upon the prices of commodities are not only ineffectual for the purpose proposed, but likewise productive of very evil consequences--resolved, that it be recommended to the several states to repeal or suspend all laws limiting, regulating or restraining the Price of any Article."
From someone whose counsel would improve the economic competence of the Bush Administration --
"Your America is doing many things in the economic field which we found out caused us so much trouble. You are trying to control peoples' wages and prices — peoples' work. If you do that you must control peoples' lives. And no country can do that part way. I tried and it failed. Nor can any country do it all the way either. I tried that too and it failed. You are no better planners than we. I should think your economists would read what happened here."
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