The Austrian economists do not create busts, any more than Isaac Newton created gravity. They merely understand why they occur. Beijing does not want to get caught up in the kind of technological race that finally broke the Soviet empire. Despite evidence that the US economy is heading into recession many economic commentators are still fighting the idea. Recent events in Australia and California have brought government intervention in prices and production back on to the political scene.
Gas is a particularly good example for Australia regarding the dangers of price-fixing regulations.
Nearly five years ago a task force of government officials assisted by industry representatives made regulatory proposal that would ensure competition in the gas industry. That the proposals would have the perverse effect of hindering competition, investment and innovation completely eluded them. In the case of gas, for example, the regulator would determine the price of carriage based on cost. This is a ludicrous proposition from an Austrian angle because costs are subjective and not objective. This view is clearly based on the concept of opportunity cost.