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A World of Wealth: How Capitalism Turns Profits into Progress by Thomas G. Donlan

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Chapter 7. The Capitalist Struggle against Low Finance: Price Controls and Regulation Endanger the Free Market

For every problem that arises when people exchange goods and services, a market solution exists. Free participants in markets adjust the prices they charge and accept. When many people want something, the price of it goes up; when many people disdain something in the marketplace, the price goes down. In the short run, prices change to clear the market—to sell all the products on offer in accordance with their scarcity or abundance. In the long run, higher prices send suppliers a signal to produce more; lower prices send suppliers the opposite signal.

Every market solution, however, creates another problem because some people are priced ...

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