Christianomics: A blog on economics, politics, and law

The law of supply and demand simply says that as demand increases, the price will increase until the supply catches up. What we saw with toilet paper in 2020 and what we are now seeing on the East Coast with gas prices is what happens when government (and private companies) stop the price from rising. We all get shortages. (1). Source: https://fee.org/articles/why-politicians-not-hackers-are-to-blame-for-the-gasoline-shortage/?utm_source=zapier

"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).