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Change Quote by Milton Friedman

“Individual price and wage changes will not be prevented. In the main, price changes will simply be concealed by taking the form of changes in discounts, service, and quality, and wage changes, in overtime, perquisites and so on…. But to whatever extent the freeze is enforced, it will do harm by…” quote by Milton Friedman
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“Individual price and wage changes will not be prevented. In the main, price changes will simply be concealed by taking the form of changes in discounts, service, and quality, and wage changes, in overtime, perquisites and so on…. But to whatever extent the freeze is enforced, it will do harm by distorting relative prices.”

Milton Friedman

About This Quote

Source Book: Capitalism and Freedom, 1962

Price and wage controls hide true market signals, leading to distortions that harm economic efficiency.

In simple terms: Controls conceal real price changes, causing market distortion.

Key Takeaway

Avoid price and wage freezes to maintain market clarity.

Themes

economics policy market distortion

Mood

critical analytical

Type

philosophical inspirational

When to use this quote

  • government regulation
  • business pricing
  • labor negotiations

Key Concepts

price signaling wage dynamics

Questions to Reflect On

  • What alternatives can achieve fairness without distorting prices?
  • How can policymakers communicate the hidden costs of controls?
A Different Perspective

Such policies may be politically popular despite inefficiency.

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