Price Controls (Scary!!)

This is a scary thing that Professor Mankiw points out. It never ceases to amaze me the things that get done in the name of political expediency.

They're baaack!

via Greg Mankiw's Blog by Greg Mankiw on 3/16/09

Price controls, that is:

Across the country, from Vermont to Alaska, state and municipal governments are doing what they can to ease the burden for Americans who are increasingly out of work and unable to pay their bills. One controversial solution being considered is a move back to price controls. The New York Legislature and the San Francisco City Council are considering expanding rent controls. Some politicians in Vermont are trying to limit the price of milk. And in Alaska, a bill to cap oil prices is pending in the state legislature.

The bad news: There will be more shortages and gross inefficiencies in the allocation of resources.

The good news: Chapter 6 of my favorite textbook will not become obsolete.