How Price Controls Lead to Socialism

This article is excerpted from Middle-of-the-Road Policy Leads to Socialism

The government believes that the price of a definite commodity, e.g., milk, is too high. It wants to make it possible for the poor to give their children more milk. Thus it resorts to a price ceiling and fixes the price of milk at a lower rate than that prevailing on the free market. The result is that the marginal producers of milk, those producing at the highest cost, now incur losses.

Giuliano Millan is a computer engineering major attending Cal Poly Pomona.