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Many
of our current elected officials seem to be ignorant of some basic economic
principles. The free market is the best system for the exchange of goods
and services. During times of short supply this may be painful to buyers,
but when government tries to interfere with the laws of supply and demand
they invariably make the situation worse. If they fix a price below its
market value a shortage will happen. If they fix a price above its market
value a surplus will always develop. Price gouging laws prevent goods
from reaching customers during times of crisis or shortage by reducing
the incentive to bring these goods to market. Minimum wage laws which
raise the price of labor above their free market value cause unemployment
to increase and decrease the incomes of those exempted from those laws
such as farmers, fishermen, and domestic helpers by increasing the demand
for these jobs by unskilled workers.
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![]() Paid for and Authorized by Bill Gombar for Legislature, John Cushing Treasurer |
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