Posted by
The New THOMA$ REPORT on Wednesday, November 11, 2009 6:31:45 PM
Two Russian economists, neither of which had ever lived in a free market society, understood this: " 'Everything is interconnected in the world of prices, so that the smallest change in one element is passed along the chain to millions of others.' 'What does that mean? It means that a huge increase in the demand for ice cream can mean higher prices for catchers' mitts, among other things. When more cows are needed to produce more milk to make ice cream, then fewer cows will be slaughtered and that means less cowhide available to make baseball gloves. Supply and demand mean that catchers' mitts are going to cost more." This is easy to understand, but is not understood by our po0liticians and bureaucrats, who all think they can violate this law with impunity. Unfortunately for them, this law CANNOT be violated with impunity. This is why their grandiose plans usually fail and it is US who suffer for it. (
Prof. Thomas Sowell)