Inching Toward Commercial Freedom
It's not often I can say it, so enjoy: the Supreme Court did the right thing. It has reversed a century-old rule that criminalized retail price agreements. Good. Great. There are 10 million bad regulations to go.
Now, if you just happen to be reading over the Constitution, you will note that it does not give government power to tell manufacturers what the price of their products should be, or regulate the terms of the contracts, much less provide a rationale for economy-wide price controls. In fact, if you were reading it for the first time, you might find the assertion that such a power exists to be preposterous on its face. Truly it is. The Constitution gives the federal government no power to regulate the details of economic contracts.
A century ago, however, the Supreme Court developed a different view. FULL ARTICLE
Comments (2)
skh.pcola
Even when states assume the power to regulate retail prices, it is a remarkable example of power mongering. Where was it recently that a state chose to fine a gas station owner for ging small discounts to the elderly and (I think) supporters of a local soccer team? The state stepped in and held that all gas must be sold at the retail level at something like 6% above wholesale. (My numbers may be wrong, but the general concept is correct.)
Free trade is an endangered species. Although I suspect that policy makers are cognizant of the basic tenets of economic theory, they choose to ignore them in the pursuit of pandering to the lowest common denominator--constituents who probably don't or won't vote anyway.
Published: June 29, 2007 11:15 PM
Gabriel
Here's what you refered to: State: Gas station owner told only that he must follow law
Published: June 30, 2007 8:12 AM