--- title: "Meaning & Key Takeaway of: Economists may not know much. But we know…" description: "\"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 legis..." image: "https://sms4smile.com/quotes/i/85c/milton-friedman-616_commodity_economists-may-not-know-much-but-we-know_1358986.png" --- # Economists may not know much. But we know one thing very… ![“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](https://sms4smile.com/quotes/i/85c/milton-friedman-616_commodity_economists-may-not-know-much-but-we-know_1358986.png) [Download](https://sms4smile.com/quotes/i/85c/milton-friedman-616_commodity_economists-may-not-know-much-but-we-know_1358986.png) [Open image](https://sms4smile.com/quotes/i/85c/milton-friedman-616_commodity_economists-may-not-know-much-but-we-know_1358986.png) > “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](https://sms4smile.com/quotes/author/milton-friedman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Commodity](https://sms4smile.com/quotes/about/commodity/) [Done](https://sms4smile.com/quotes/about/done/) [Economist](https://sms4smile.com/quotes/about/economist/) [Government](https://sms4smile.com/quotes/about/government/) [Knows](https://sms4smile.com/quotes/about/knows/) [Maximum](https://sms4smile.com/quotes/about/maximum/) [May](https://sms4smile.com/quotes/about/may/) [Minimum](https://sms4smile.com/quotes/about/minimum/) [One thing](https://sms4smile.com/quotes/about/one-thing/) [One time](https://sms4smile.com/quotes/about/one-time/) [Politics](https://sms4smile.com/quotes/about/politics/) [Produce](https://sms4smile.com/quotes/about/produce/) [Shortage](https://sms4smile.com/quotes/about/shortage/) [Shortage Government](https://sms4smile.com/quotes/about/shortage-government-4645095/) [Sugar](https://sms4smile.com/quotes/about/sugar/) [Surplus](https://sms4smile.com/quotes/about/surplus/) [Surplus Government](https://sms4smile.com/quotes/about/surplus-government-4645096/) [Surpluses Shortages](https://sms4smile.com/quotes/about/surpluses-shortages-4645093/) [Surpluses Wheat](https://sms4smile.com/quotes/about/surpluses-wheat-4645094/) [Want](https://sms4smile.com/quotes/about/want/) [Want Surplus](https://sms4smile.com/quotes/about/want-surplus-3102265/) [Wells](https://sms4smile.com/quotes/about/wells/) [Wheat](https://sms4smile.com/quotes/about/wheat/) ## Related quotes > [“The Americans want a surplus stocked up to supply their every whim. And their appeals are much less requests, more demands. Indeed, the phrase…](https://sms4smile.com/quotes/geoffrey-wood/the-americans-want-a-surplus-stocked-up-to-supply-their-every-whim/) [Geoffrey Wood](https://sms4smile.com/quotes/author/geoffrey-wood/) > [Large department stores, with their luxuriant abundance of canned goods, foods, and clothing, are like the primary landscape and the geometrical locus of affluence.…](https://sms4smile.com/quotes/jean-baudrillard/large-department-stores-with-their-luxuriant-abundance-of-canned/) [Jean Baudrillard](https://sms4smile.com/quotes/author/jean-baudrillard/) > [ \[The ruling elites\] know who their enemies are, and their enemies are the people, the people at home and the people abroad. Their enemies… ](https://sms4smile.com/quotes/michael-parenti/the-ruling-elites-know-who-their-enemies-are-and-their-enemies-are/) [Michael Parenti](https://sms4smile.com/quotes/author/michael-parenti/) > [The federal government cannot maintain a budget surplus any more than an alcoholic can leave a fresh bottle of whiskey untouched in the cupboard.](https://sms4smile.com/quotes/ron-paul/the-federal-government-cannot-maintain-a-budget-surplus-any-more-than/) [Ron Paul](https://sms4smile.com/quotes/author/ron-paul/) > [Our ideal society finds it essential to put a rent on land as a way of maximizing the total consumption available to the society.…](https://sms4smile.com/quotes/paul-samuelson/our-ideal-society-finds-it-essential-to-put-a-rent-on-land-as-a-way/) [Paul Samuelson](https://sms4smile.com/quotes/author/paul-samuelson/) > [ Ohioans know that he inherited a mess and created a surplus. So, on election day, John \[Kasich\] will prevail in Ohio. ](https://sms4smile.com/quotes/tom-ridge/ohioans-know-that-he-inherited-a-mess-and-created-a-surplus-so-on/) [Tom Ridge](https://sms4smile.com/quotes/author/tom-ridge/) > [ He \[Steve Jobs\] had come from the surplus electronics parts world.So he came from that world, and he said let's sell PC boards for… ](https://sms4smile.com/quotes/steve-wozniak/he-steve-jobs-had-come-from-the-surplus-electronics-parts-world-so-he/) [Steve Wozniak](https://sms4smile.com/quotes/author/steve-wozniak/) > [Cycles of shortage and surplus characterize the entire history of oil.](https://sms4smile.com/quotes/daniel-yergin/cycles-of-shortage-and-surplus-characterize-the-entire-history-of-oil/) [Daniel Yergin](https://sms4smile.com/quotes/author/daniel-yergin/) > [The rich man never really gives anything, he only distributes part of the surplus. It is the person of moderate means who really gives.](https://sms4smile.com/quotes/george-eastman/the-rich-man-never-really-gives-anything-he-only-distributes-part-of/) [George Eastman](https://sms4smile.com/quotes/author/george-eastman/) > [I certainly like it if the work is beautiful, but that's a surplus effect. I can only think about that after I consider how…](https://sms4smile.com/quotes/walead-beshty/i-certainly-like-it-if-the-work-is-beautiful-but-that-s-a-surplus/) [Walead Beshty](https://sms4smile.com/quotes/author/walead-beshty/) > [Institutionalized rejection of differences is an absolute necessity in a profit economy which needs outsiders as surplus people. As members of such an economy,…](https://sms4smile.com/quotes/audre-lorde/institutionalized-rejection-of-differences-is-an-absolute-necessity/) [Audre Lorde](https://sms4smile.com/quotes/author/audre-lorde/) > [What works for Germany can't work for the rest of Europe: No country can run a chronic surplus without others running deficits.](https://sms4smile.com/quotes/george-soros/what-works-for-germany-can-t-work-for-the-rest-of-europe-no-country/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [No industry or country can reach its full potential until women reach their full potential. This is especially true of science and technology, where…](https://sms4smile.com/quotes/sheryl-sandberg/no-industry-or-country-can-reach-its-full-potential-until-women-reach/) [Sheryl Sandberg](https://sms4smile.com/quotes/author/sheryl-sandberg/) > [Back in those days, in the fifties and sixties, countries had balance of payment's deficits or surpluses, those were reflected much more than today…](https://sms4smile.com/quotes/robert-c-solomon/back-in-those-days-in-the-fifties-and-sixties-countries-had-balance/) [Robert C. Solomon](https://sms4smile.com/quotes/author/robert-c-solomon/) > [I was the chairman of the Budget Committee and the lead architect the last time it happened in Washington, and when we did it…](https://sms4smile.com/quotes/john-kasich/i-was-the-chairman-of-the-budget-committee-and-the-lead-architect-the/) [John Kasich](https://sms4smile.com/quotes/author/john-kasich/) ## More by Milton Friedman > [The government solution to a problem is usually as bad as the problem.](https://sms4smile.com/quotes/milton-friedman/the-government-solution-to-a-problem-is-usually-as-bad-as-the-problem/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [I believe the role that people like myself have played in the transformation of public opinion has been by persistently presenting a different point…](https://sms4smile.com/quotes/milton-friedman/i-believe-the-role-that-people-like-myself-have-played-in-the/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [To really understand something you've got to reduce it to its principles.](https://sms4smile.com/quotes/milton-friedman/to-really-understand-something-you-ve-got-to-reduce-it-to-its/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [It is a mark of how far we have gone on the road to serfdom that government allocation and rationing of oil is the…](https://sms4smile.com/quotes/milton-friedman/it-is-a-mark-of-how-far-we-have-gone-on-the-road-to-serfdom-that/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Economic freedom is an essential requisite for political freedom. By enabling people to cooperate with one another without coercion or central direction, it reduces…](https://sms4smile.com/quotes/milton-friedman/economic-freedom-is-an-essential-requisite-for-political-freedom-by/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [“The people in one district can choose not to reelect their member of Congress, but that will not change the composition of the government…](https://sms4smile.com/quotes/milton-friedman/the-people-in-one-district-can-choose-not-to-reelect-their-member-of/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [When you have a time of crisis what happens depends on what ideas are floating around, and what ideas have been developed, and thought…](https://sms4smile.com/quotes/milton-friedman/when-you-have-a-time-of-crisis-what-happens-depends-on-what-ideas-are/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [The government doesn't have any money. The only power it has is to take from some and give to others.](https://sms4smile.com/quotes/milton-friedman/the-government-doesn-t-have-any-money-the-only-power-it-has-is-to/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [What would the people who sold us goods do with the money? They'd get dollars. What would they do with the dollars? Eat them?!](https://sms4smile.com/quotes/milton-friedman/what-would-the-people-who-sold-us-goods-do-with-the-money-they-d-get/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [World trade depends on differences among countries, not similarities. Different countries are in different stages of development. It is appropriate for them to have…](https://sms4smile.com/quotes/milton-friedman/world-trade-depends-on-differences-among-countries-not-similarities/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Is there some society you know of that doesn't run on greed? You think Russia doesn't run on greed? You think China doesn't run…](https://sms4smile.com/quotes/milton-friedman/is-there-some-society-you-know-of-that-doesn-t-run-on-greed-you-think/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Well first of all, tell me, is there some society you know of that doesn't run on greed? You think Russia doesn't run on…](https://sms4smile.com/quotes/milton-friedman/well-first-of-all-tell-me-is-there-some-society-you-know-of-that/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [I think almost every economist would agree that government gets itself in trouble when it tries to interfere with voluntary behavior.](https://sms4smile.com/quotes/milton-friedman/i-think-almost-every-economist-would-agree-that-government-gets/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [It is most attractive about the US to people and countries with wealth is that it can provide security, insurance really, against political instability.…](https://sms4smile.com/quotes/milton-friedman/it-is-most-attractive-about-the-us-to-people-and-countries-with/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Hong Kong is the bellwether. If the Chinese stick to their agreement to let Hong Kong go its own path, then China will also…](https://sms4smile.com/quotes/milton-friedman/hong-kong-is-the-bellwether-if-the-chinese-stick-to-their-agreement/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) [Explore all 444 Milton Friedman quotes ](https://sms4smile.com/quotes/author/milton-friedman/) ## More Commodity quotes > [We do not claim that punning is legitimate wit. Wit consists in combination of ideas, punning in combination of words only. We wonder at…](https://sms4smile.com/quotes/harriet-hosmer/we-do-not-claim-that-punning-is-legitimate-wit-wit-consists-in/) [Harriet Hosmer](https://sms4smile.com/quotes/author/harriet-hosmer/) > [“Truth is commodity in political consumption.”](https://sms4smile.com/quotes/toba-beta/truth-is-commodity-in-political-consumption/) [Toba Beta](https://sms4smile.com/quotes/author/toba-beta/) > [Money degrades all the gods of man and converts them into commodities.](https://sms4smile.com/quotes/karl-marx/money-degrades-all-the-gods-of-man-and-converts-them-into-commodities/) [Karl Marx](https://sms4smile.com/quotes/author/karl-marx/) > [Fear is the most valuable commodity in the universe.](https://sms4smile.com/quotes/max-brooks/fear-is-the-most-valuable-commodity-in-the-universe/) [Max Brooks](https://sms4smile.com/quotes/author/max-brooks/) > [I eventually found that the soul is more than an immortal commodity to win and save. It is the repository of the inner divine,…](https://sms4smile.com/quotes/sue-monk-kidd/i-eventually-found-that-the-soul-is-more-than-an-immortal-commodity/) [Sue Monk Kidd](https://sms4smile.com/quotes/author/sue-monk-kidd/) > [Exploitation and manipulation produce boredom and triviality; they cripple man, and all factors that make man into a psychic cripple turn him also into…](https://sms4smile.com/quotes/erich-fromm/exploitation-and-manipulation-produce-boredom-and-triviality-they/) [Erich Fromm](https://sms4smile.com/quotes/author/erich-fromm/) > [It is an anomaly that information, the one thing most necessary to our survival as choosers of our own way, should be a commodity…](https://sms4smile.com/quotes/a-j-liebling/it-is-an-anomaly-that-information-the-one-thing-most-necessary-to-our/) [A. J. Liebling](https://sms4smile.com/quotes/author/a-j-liebling/) > [Petrol price is a deregulated commodity, price of which is decided by our oil marketing companies based on input cost and other parameters.](https://sms4smile.com/quotes/veerappa-moily/petrol-price-is-a-deregulated-commodity-price-of-which-is-decided-by/) [Veerappa Moily](https://sms4smile.com/quotes/author/veerappa-moily/) > [Oil painting did to appearances what capital did to social relations. It reduced everything to the equality of objects. Everything became exchangeable because everything…](https://sms4smile.com/quotes/john-berger/oil-painting-did-to-appearances-what-capital-did-to-social-relations/) [John Berger](https://sms4smile.com/quotes/author/john-berger/) > [The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you. 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After all, you can never have enough of what you didn't want in…](https://sms4smile.com/quotes/robert-holden/to-be-happy-you-have-to-know-what-you-really-want-after-all-you-can/) [Robert Holden](https://sms4smile.com/quotes/author/robert-holden/) [Browse all 673 Commodity quotes ](https://sms4smile.com/quotes/about/commodity/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "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? 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