Institutul Ludwig von Mises - România: Price Controls, the Speculators and Our Prosperity - Vlad Topan

Price Controls, the Speculators and Our Prosperity

Vlad Topan
romanian

© Institutul Ludwig von Mises - România

The Romanian authorities think of trying again a so called economic instrument they unsuccessfully used in the communist period: price controls by the state. Beyond the fact that the economic ideas on which such a measure is based are wrong (the erroneous theory which says costs determine prices, or the one which considers the intermediary or the speculator as cost raisers harming the final consumer) and that the fixing of prices by the authorities violates the private property of peaceful exchangers (therefore being unjust and, let us also say, unconstitutional), price controls can only lead to a reduction of the quantity of agricultural products offered on the markets and at the same time to the development of black markets, the latter trying to remediate – with higher costs – the created situation. Not to speak of the new pretexts for state intervention to fix undesired consequences.

The Private Property Order

Ordinea proprietății private

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