Built Quote by Charles Koch
“The problem is, to have prices fall would work fine if we didn't have all these built in rigidities on downward prices, because then things don't adjust, and that's how we have recessions and depressions, is prices and costs don't adjust together and they get out of whack, and we end up with dislocations.”
About This Quote
Source Speech: Interview on Economic Policy, 2015
Rigid price mechanisms prevent markets from self‑correcting, leading to economic dislocations and recessions.
In simple terms: When prices can’t fall, economies suffer.
Key Takeaway
Allow flexible pricing to avoid downturns.
Themes
economics
market dynamics
recessions
Mood
analytical
concerned
Type
economic
policy
When to use this quote
- policy debates
- business planning
- investment decisions
Key Concepts
price rigidity
market equilibrium
macroeconomic cycles
Questions to Reflect On
- How can policy balance price flexibility with stability?
- What mechanisms can align costs and prices?
A Different Perspective
If prices fall too quickly, it may cause deflationary spirals.
![“The trajectory of this country [USA] is not positive and particularly for the disadvantaged, as we see what's happening. The gains in productivity have dropped, the gains in income for the middle class and the least advantaged have slowed, at best.” quote by Charles Koch](https://sms4smile.com/quotes/img-quotes/b59/charles-koch-2666_class_the-trajectory-of-this-country-usa-is-no_216294.jpg)
