Prices are Communication

"Prices are communication.

Price controls are government censorship."

-Russ Nelson


One of the most important factors (and one of the most overlooked) aspects of free market capitalism is the utility of prices.

Without know anything about the product, a high price can tell you something is rare or hard to make. It might also hint at the quality of two similar products.
Price controls (most often associated with top-down socialism and communism) removes these features. And that’s when you excesses (when prices are fixed too high) and shortages (when prices are fixed too low).

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