Crash Course Economics
Price Controls, Subsidies, and the Risks of Good Intentions
S1 • E20 Jan 12, 2016 10m
So, during times of inflation or deflation, why doesn't the government just set prices? It sounds reasonable, but price ceilings or floors just don't work. Adriene and Jacob explain why. Subsidies, however, are a little different, and sometimes they even work. We'll also explain that. Today you'll learn about stuff like price controls, deadweight loss, subsidies, and efficiency.
