Tuesday, September 30, 2008

Happy (late) Birthday, Professor Mises!

I've just learned from a comment at SCSU Scholars that the rejection of the bailout boondoggle came, appropriately, on the birthday of Ludwig von Mises.

As we contemplate the likely effects of government intervention into any number of industries, we need to remember one of Mises' chief accomplishments; the clarification of the principle that due to the absence of the economic indicator called "price," socialism would always fail to solve the problems of economic calculation, for which price is the dominant variable.

If you're not clear on this, take a look at what's happening in Atlanta, where laws against price gouging (as well as EPA regulations too, I'd bet) have prevented gasoline producers from profitably marketing their products. Or take a look at store shelves in Hugo Chavez' Venezuela, or try to get an affordable apartment in New York City, or....

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