Unintended Consequences of Price Controls

Antony Davies

Antony Davies is a professor of economics at Duquesne University and a Research Fellow at the Mercatus Center at George Mason University.

Prof. Antony Davies explains that prices are not levers that set value, but rather, are metrics that respond to value. Therefore, since government cannot legislate value, attempts to control prices will generate unintended consequences. Using the minimum wage as an example, Davies demonstrates that minimum wage laws increase unemployment rates amongst low-​skilled workers.

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