Price Regulations: Shutting Off the Lifeblood of the Economic Circulatory System
Introduction The subject of prices has engendered a vast economic literature of theory and opinion as well as conflicts of vision about the way society should operate. Beginning around the time the United States came into existence with the American Revolution of 1776 there has been a dichotomy between those sympathetic with the idea of a total free market economy and those who prefer state control of economic life. At the polar opposite ends of this debate are the ideas of economist Adam Smith (1723-1790), who advocated a totally free market 105and the ideas of Karl Marx (1818-1883), the socialist political philosopher who advocated state central control of all aspects of economic life. 106 Andrew Galambos' teaching, and this book, espouse the view of prices originated and developed by members of the Austrian school of economic thought, such as Carl Menger (1840-1921), Eugen von Böhm-Bawerk (1851-1914), Max Weber (1856-1920), Ludwig von Mises (1881-1973) and Friedrich Hayek (1899