One of the recent headlines tells us that President Trump is going to write an executive order to decrease the price of prescription drugs dramatically. Everyone cheers. Everyone claps each other on the back. Everyone forgets what happens when the government tries to control prices.
I think of Nixon and the price of gas. There was never a real shortage but his clumsy attempts to control the market caused long lines and stations with no gas. It was horrible and is the standard response to elites who know more than the free market. Extreme inflation, hoarding, black markets and shortages are the result.
Why do we think it will be any different this time? Is it because we are special? I don’t think the laws of economics care about how wonderful you are. Remember that the price of eggs went down because the government got out of the way not because Trump is a better egg layer.
homo unius libri
Saturday, May 17, 2025
Opus 2025-257: Headlines: This time it’s different
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Comments are welcome. Feel free to agree or disagree but keep it clean, courteous and short. I heard some shorthand on a podcast: TLDR, Too long, didn't read.