Unintended Consequences of Price Controls

Prof. Antony Davies explains that prices are not levers that set value, but rather, are metrics that respond to value. Therefore, since government cannot legislate value, attempts to control prices will generate unintended consequences. Using the minimum wage as an example, Davies demonstrates that minimum wage laws increase unemployment rates amongst low-skilled workers.

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  Education

[DrTodd13]

Any discussion of this topic that doesn't mention the mobility between income levels is incomplete. The "poor" are not a constant sub-class. Those new to the work force with low skills are today's poor but by accumulating work experience they do not stay poor.

[LearnLiberty]

Prof. Horwitz addresses that very issue in the video on our channel called: "Are the Poor Getting Poorer?" You should check it out and let us know what you think. youtube.com/watch?v=vDhcqua3_W­8

[niklasbastholmhansen]

Wow, more knowledge in 5 mins. than most 5 hour seminars supply....

[LibertyDownUnder]

It's ironic that almost all the advocates of minimum wage are politicians who started off as unpaid interns.

Some as lawyers, politicians, stock brokers - all of which start off at $0.

[VIPrtn]

Trust in the Lord JESUS CHRIST with all your heart and lean not on your own understanding. Trust JESUS CHRIST, make Him the Lord of your life !

[Kyong Kim]

I hear these numbers were "massaged".

[FortNikitaBullion]

I agree that inflation is understated. In 1971 gold was $35 today it has risen at least 40x, yet most inflation calculators will tell you $1 in 1971 is at most $7 today.

[VIKDR1]

Actually inflation is probably overestimated, because it doesn't take technological improvements into account.

But no, the numbers usually do not take food stamps, housing, or other benefits into account.

[Slave2PaperWithInkOn]

Checkout the 2min52 vid "Why Do Banks Make So Much Money?" (+ others) by Positive Money - "Charlie Brooker on Money" and "The Money Fix" to name a FEW. PEACE

[Slave2PaperWithInkOn]

CHECKOUT (after this BRAINWASHING) the 2min52 vid "Why Do Banks Make So Much Money?" by Positive Money - "Charlie Brooker on Money," - "97% Owned" and "This Town Prints lt's Own Money." Alternatives to this INVENTION called money ARE BOUNDLESS. Peace

[mntiki]

You must have been down at the occupy gathering.

[Tigerfire75]

put the kid in a giant tub of ice water.

When was the last time the government did anything better then private citizens?

[smber2cnma]

I agree with most these vids, but have questions on this one. Saying inflation was accounted for...using US Labor & Statistics claims on inflation? B/c I think their claims on inflation are very low, thus this graph would skew misleadingly to the right over time as unaccounted for inflation occurs. 2nd, what is "income" are foodstamps, housing subsidies, and other gov't programs included? B/c that moves people's income up without them getting a higher wage at this might otherwise suggests.