Tuesday, March 30, 2010

The Government Plantation Forever?

Let's do a quick thought experiment.

The price of apples keeps going up. The government decides that every American must buy apples. But some can't afford them.

Government starts controlling how much apple farmers are paid. It mandates that every single American buys apples and subsidizes those under a certain income level so they can.

Will the price of apples go down, stay the same, or go up? Or, in economist's language, if you limit supply of a commodity and increase demand, will the price of that commodity go up or down?

Did you say up? You get an "A." But if you did say "up," you surely are not a Democrat.

Democrats have just committed multi-trillions of our money and, as a bonus, sold a big chunk of American freedom down the road ...

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