Economists may not know much. But we know one thing very…
“Economists may not know much. But we know one thing very well: how to produce surpluses and shortages. Do you want a surplus? Have the government legislate a minimum price that is above the price that would otherwise prevail. That is what we have done at one time or another to produce surpluses of wheat, of sugar, of butter, of many other commodities. Do you want a shortage? Have the government legislate a maximum price that is below the price that would otherwise prevail.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Explains that price controls cause surpluses or shortages, highlighting market distortion.
In simple terms: Price controls create excesses or shortages.
Key Takeaway
Avoid price controls to let markets work.
Themes
economics
policy
market dynamics
Mood
analytical
critical
Type
economic
political
When to use this quote
- agricultural pricing
- housing markets
- energy pricing
Key Concepts
price ceilings
price floors
government intervention
Questions to Reflect On
- What are the trade‑offs of price controls?
- When might intervention be justified?
A Different Perspective
May ignore other policy goals like equity.