Government can’t regulate just one side of the market

posted by
March 3, 2011
Foundation for Economic Education
by Steven Horwitz  
Posted in Commentary

"I’ve spent the last week or so teaching price controls in my intro-to-economics class. One thing I tried to stress is that controls are often sold to the citizenry in a way that disguises what they really do. I don’t mean just the obvious point that there are unintended consequences. I mean that such laws appear to regulate only the 'bad guys' while protecting the innocent folks on the other side of the transactions. In reality government can’t regulate just one side of the market: Regulations on sellers are necessarily regulations on buyers, and regulations on buyers are necessarily regulations on sellers." (03/03/11)  

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