We economists don't know much, but we do know how to…
“We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Economists can manipulate markets to create shortages by imposing price caps, leading to reduced supply.
In simple terms: Price caps cause shortages.
Key Takeaway
Avoid price controls to prevent shortages.
Themes
economics
policy
market
Mood
cautious
analytical
Type
economic
policy
When to use this quote
- retail pricing
- energy markets
- agricultural policy
- consumer goods
Key Concepts
market failure
price controls
Questions to Reflect On
- How do price caps affect producers?
- What alternatives exist to manage prices?
A Different Perspective
Shortages may also arise from supply chain issues, not just price caps.