Birdwatch Note Rating
2024-03-01 14:17:45 UTC - HELPFUL
Rated by Participant: EC1224A270346A944051252CDEC0F926046B09BB57E2E3D80A3244C54F1F170A
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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