Selling prices naturally follow the laws of SUPPLY & DEMAND. When prices rise more goods are produced which eventually satisfies the demand for goods. When prices fall fewer goods are produced which satisfies the refusal to produce at too low a profit. Government intervention confuses the buy/sell signals and leads to shortages or over-supply. If government demands too low a selling price fewer products are produced which leaves consumers without goods to buy. When government requires too high of a selling price fewer goods are purchased which restricts profit leading to shortages. In both cases government is interferring with the market which government is not supposed to do. In a free culture government is forbidden to interfere with the market but there are no free cultures, All governments interfere with the market and government believes it is the moral thing to do despite the immorality of market interference.
Market interference is a marker of a totalitarian tendency in a government.
Views: 6
