Prices Are Just Signals That Create Incentives
Here’s a good video explaining a point that I make again and again.
Policies that attempt to fix prices (whether the price of labor known as wages or the prices of goods and services) are sort of like ancient medical practices based on superstition. Sometimes they cover the symptom while the illness heals; sometimes they don’t really do anything; sometimes they make things worse; and most of the time, they fail to do anything, of themselves, to fix the underlying problem.
