Source: Foundation for Economic Education
by Ninos P Malek
“Is it the legitimate role of government to pressure or threaten private businesses over the prices they voluntarily charge for their own property? Most economists would begin with the basic function of prices. Market prices are not arbitrary numbers; they communicate information about scarcity, demand, costs, and alternatives. When prices are allowed to adjust freely, they coordinate millions of decisions made by consumers, producers, wholesalers, and retailers. That is why virtually every textbook on the principles of economics warns that government-imposed price controls—whether they are ceilings intended to ‘protect consumers’ or floors designed to guarantee sellers a ‘fair price’—produce unintended consequences.” (07/14/26)