Price Regulations: Shutting Off the Lifeblood of Economic Circulation

1970s gas lines

During a time of rapidly rising gasoline prices in the 1970s the U.S. federal state imposed price controls on gasoline. Instead of allowing price to stabilize supply and demand, chronic shortages of gasoline developed and Americans had to wait in lines for hours to buy gasoline. Naturally, the shortages disappeared as soon as price controls were removed.

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