Birdwatch Note Rating
2024-03-01 08:01:47 UTC - HELPFUL
Rated by Participant: D02BF9A1B374A9DF03BEABD5F70FD710BD55F30F2F27D93C6C31027BEF210297
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
All Note Details