Meddling with Economics

This is why you don’t meddle with the Economy every chance you get—even though there is apparently something you can do. There’s always something you’ll miss in your predictions, and then everyone is left to pay the price.

They tried to regulate the cost of cancer drugs—but only ended up creating a shortage of said drugs in the market:

The low profit margins mean that manufacturers face a hard choice: lose money producing a lifesaving drug or switch limited production capacity to a more lucrative drug.

It’s a good read; go read the whole thing.

Link via Cafe Hayek

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