Jeremy Cady on Nostr: The reason price controls fail is not that we cannot pick the right price, but that ...

The reason price controls fail is not that we cannot pick the right price, but that by doing so we prevent the natural fluctuation of prices.

Prices are volatile and ever changing.

They are the summation and coordination of society's knowledge regarding inputs and outputs.

Since new knowledge always exists and needs to be shared, prices must be allowed to continuously fluctuate to reflect that knowledge.

By setting a price, we prevent the sharing of new knowledge with the market and allowing participants to adjust to that knowledge as necessary.

This inevitably leads to shortages or surpluses, inefficiencies in the market.

Inflation is a form of price control. The devaluation of currency manipulates prices and perverts the knowledge being shared with the market.