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Friday, November 11, 2005

Swaying Liberals On The Harm Of Price Control With Logic Of Free Market

My free market harangues along with real life examples of what I have been professing has led 2 liberal friends to either begin their self-education into Economics (one purchased a subscription to The Economist magazine) and the other admitted that he agrees with me on the grand-standing of Congress on the oil profits (he took the major step of admitting the rule of supply and demand is immutable). Both of these guys are in their 50's and have shown remarkable open-minds given their ages and lifetimes of liberal-leftist sentiments. I can allow them to hate Bush so long as they stop messing with the free market.

Here is my e-mail to them. I threw in 3 more economic principles for them to ponder. I attached the essay by Thomas diLorenzo on the 4,000 year history of price controls resulting in economic ruin in order to avoid any back-sliding in their thinking.

Now that I have you on board with price controls creating scarcity (see DiLorenzo’s article below in case you are wavering), we have to work on the related principles that:
1. High marginal taxes destroy capital investment and jobs;
2. Minimum Wage destroys opportunity for low or no skilled workers from entry into the job market (think of price controls of wages creating job scarcity);
3. Government regulation and control results in destruction of the thing it is supposed to protect because there is no personal stake in the venture by the bureaucrat other than preservation of their jobs.

Incentives, Incentives, Incentives. Who brings their rental car to the car wash prior to returning it?

This stuff has nothing to do with party affiliation except that one party at least mouths, and sometimes follows, such principles. These are immutable, in my mind, principles of cause and effect. The 3 examples cites above have happened throughout history all over the world.



At 7:54 PM, Blogger Aaron said...

Man your email to your friends was right on. I don't think I could have said it any better.

I just posted an article on rent controls if you are interested.


Have a good one.

At 7:00 PM, Anonymous Anonymous said...

Where did you find it? Interesting read » » »

At 3:40 PM, Anonymous Anonymous said...

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