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 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
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.
Avoid price controls to let markets work.
Themes
Mood
Type
When to use this quote
- agricultural pricing
- housing markets
- energy pricing
Key Concepts
Questions to Reflect On
- What are the trade‑offs of price controls?
- When might intervention be justified?
May ignore other policy goals like equity.