To Understand Capitalism . . . .

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Dr. Thomas Sowell begins the fifth edition of "Basic Economics." It's a book that explains complex economic phenomena in a way that many economists cannot. And, I might add, it provides an understanding of some economic phenomena that might prove elusive to a Ph.D. economist.

Paying attention to goals rather than incentives has been responsible for disastrous public policy. The minimum wage law is one example. Its goal is to provide "living wages." It creates incentives for employers to reduce and seek substitutes for labor and thereby causes unemployment for some workers. Rent control laws are enacted to provide "affordable housing." They provide incentives for landlords to convert apartments to condominiums, create black markets and reduce housing construction in rent-controlled areas.
-Dr. Walter E. Williams

Read on:
http://www.lewrockwell.com/2015/01/walter-e-williams/to-understand-capitalism/