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Commodity Quote by Milton Friedman

“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…” quote by Milton Friedman
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“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.”

Milton Friedman

About This Quote

Source Book: Capitalism and Freedom, 1962

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.

2.2 out of 5 (10 ratings)

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