From one of my favorite economists, Dr. Walter E. Williams. The subject: Gas, markets and price controls.

Economic ignorance, misconceptions and superstition drive us toward totalitarianism because they make us more willing to hand over greater control of our lives to politicians. That diminishes our liberties. Remember the gasoline price controls of the 1970s? The price controls caused shortages. To deal with the shortages, purchases were restricted. Then national highway speed limits were enacted. Then there were more calls for smaller and less-crashworthy cars.

In the recent gasoline supply shocks, we didn't see the shortages, long lines and closed gas stations of the 1970s. Why? Prices were allowed to perform their allocative function -- get people to use less gas and suppliers to provide more.

Economic ignorance is to politicians what idle hands are to the devil. Both provide the workshop for the creation of evil.

Posted by: Gary at 04:02 PM | No Comments | Add Comment
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