Price control
A price control is a law or regulation that limits the prices that can be charged for a good or service, which causes shortages in supply. Historically its use in free enterprise economies has mostly been limited to times of war, but has also been imposed in times of peace as a communist-like, misguided way of controlling the economy. Price controls can be imposed in a piecemeal fashion, in the form of either price ceilings or price floors. One example of a price floor for labor is the minimum wage.
In August 2024, Kamala Harris proposed price controls in response to inflation that she and Joe Biden caused, and she was widely criticized for her "Kamunism".[1]
363 federal court decisions discuss "price controls" and the "Fifth Amendment," which includes the protection of the Takings Clause against a deprivation of contract without just compensation, but only 61 federal court decisions discuss "price controls" and a right to privately contract.[2]
- ... price controls would lead to less research and development in the pharmaceutical industry, fewer new prescription drugs, and the reduced availability of prescription drugs[3]
Price controls were first enacted into U.S. law with the 1906 Hepburn Act.
References
- ↑ https://nypost.pressreader.com/new-york-post/?utm_hamburger=todays_paper
- ↑ E.g., the terms (("contract clause") or "right to contract" or "privately contract" or (obligations w/3 clause))
- ↑ Guaranteed Pain and Suffering: The Recent Research on Drug Price Controls - Derek Hunter - November 3, 2005
