I have read a great deal of economic theory for over 50…
“I have read a great deal of economic theory for over 50 years now, but have found only one economic "law" to which I can find NO exceptions: Where the State prevents a free market, by banning any form of goods or services, consumer demand will create a black market for those goods or services, at vastly higher prices. Can YOU think of a single exception to this law?”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
State bans create unmet demand, leading to illicit markets at higher prices.
In simple terms: Bans cause black markets.
Key Takeaway
Avoid prohibitions that ignore demand.
Themes
economics
policy
market dynamics
Mood
critical
inquisitive
Type
philosophical
analytical
When to use this quote
- drug prohibition
- price controls
- trade restrictions
- copyright enforcement
Key Concepts
supply and demand
regulation
informal economies
Questions to Reflect On
- Are there cases where bans reduce demand?
- What alternatives can satisfy demand legally?
A Different Perspective
Some black markets arise from cultural or ethical prohibitions, not just bans.