The issue of price control provides an excellent illustration. Invariably, as prices rise due to an expanding money supply, talk is heard that government must impose controls. The fact that such talk is becoming more and more prevalent these days may be a warning that price controls loom on the horizon. Therefore, it is absolutely essential to the debate that all be made aware of the true implications of government price-fixing. Forcing People to Conform The object of price control is really not the control of trillions of numbers and dollar signs in the economy.
Price control is merely an excuse to coercively dictate the terms of trade between people.
The penalties for violating price control edicts are levied on individuals. Jails and fines are made for people, not for prices. When government fixes price, coercion is substituted for voluntary exchange. Price is no longer determined peacefully in the market place of free and willing trade. Economic consequences must follow and they are easily discernible in light of the two functions of price.