Government is awful at…everything.

Government price setting/regulating/capping…is awful squared.

Why is price setting awful?

Because it is impossible to do it even remotely accurately.

There are a multitude of market factors that coalesce into the price of a widget at any given moment.

These multitudinous market factors – are constantly changing. So the price of the widget is constantly changing – from moment to moment, over and over and over again.

So the price government artificially sets yesterday – may be way too low today. AND way too high tomorrow. There are simply too many variables at play.

Markets set prices WAY better.

And prices need to reflect future expenses – not just past expenses.

To wit: Gasoline. The price at the pump doesn’t reflect how much the last oil barrel was – it reflects how much the next oil barrel will be.

The price of a widget – has to reflect how much it will cost to make the next widget. //

Thomas Sowell wisely noted:

“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”