Birdwatch Note Rating
2024-03-01 12:18:37 UTC - HELPFUL
Rated by Participant: 64A95A2D2AA11AF0CA2195C3346D6B09A6A3B2F458EE029380F045A461725A4E
Participant Details
Original Note:
If the government sets prices below the market equilibrium, this can result in shortages and reduced quality, as suppliers may not be willing or able to produce enough to meet demand at the controlled price. This is a well-documented phenomenon in economic literature. https://fee.org/articles/price-controls-and-shortages/ https://iea.org.uk/publications/research/flaws-and-ceilings-price-controls-and-the-damage-they-cause https://www.jec.senate.gov/public/index.cfm/republicans/2022/9/the-economics-of-price-controls
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