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Steering the Economy Over a Cliff

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Here’s a letter to the Wall Street Journal:

Editor:

Richard Sexton and Daniel Sumner rightly condemn efforts to prosecute farmers for so-called “price gouging” in the midst of the covid lockdowns (“New York’s AG Lays a Rotten Egg [2],” August 31).

Prices steer goods, services, and inputs into their most economically productive uses. Therefore, for government to restrict prices in markets from moving up and down as people adjust to changing realities of the economy is just as absurd and dangerous as it would be for government to restrict steering wheels on cars from turning left and right as drivers adjust to changing realities of the road.

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA  22030

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