Most of these policies are counterproductive because they discourage rather than encourage food production. This is especially true of price controls since farmers will grow less of the foods that have artificially low price ceilings. For example, if price controls were placed on wheat, farmers will shift some land from wheat to other products whose prices are allowed to rise faster.
Thursday, November 01, 2007
Subscribe to:
Post Comments (Atom)
1 comment:
http://www.timharford.com/favourites/becker.htm
Post a Comment