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10 - Price Controls and Market Economies

Published online by Cambridge University Press:  18 June 2021

Daniel A. Crane
Affiliation:
University of Michigan, Ann Arbor
Samuel Gregg
Affiliation:
Acton Institute
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Summary

Governments usually adopt price controls to impose restrictions on the price of goods and services by employing the appealing argument that they are protecting the groups who find it difficult to meet increasing prices. Since ancient times, regulators have set maximum or minimum prices – price ceilings or price floors. A maximum price for bread was understood as a means to protect the poorest from starvation and the maximum price for house rents to protect them from becoming homeless. The minimum wage – the price floor for labor – was seen as a guarantee to prevent unskilled workers from falling below a minimum living standard.

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Information
Christianity and Market Regulation
An Introduction
, pp. 213 - 232
Publisher: Cambridge University Press
Print publication year: 2021

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