The Center for Consumer Freedom conducted a nationwide survey to measure American's attitudes towards government imposed price caps. The Survey Results are not encouraging:
Today, the Center for Consumer Freedom (CCF) released the results of a nationwide survey showing equal levels of public support for price limits on cell phones, automobiles, and short-term loans. The findings demonstrate that Americans still lack a basic understanding of the dangers of market realities and the margins businesses work on.
Earlier this month a lobbying group called the Center for Responsible Lending (CRL) released a survey purporting to show that most Americans support capping interest rates on short-term loans. But a recent survey conducted by CCF shows that many Americans support a price cap on nearly everything: 39% support the government limiting the price of a cup of coffee as well as new televisions!
CCF's survey also showed that 57% of Americans support Congressional action to cap the cost of cell phones, 56% support capping interest on short-term loans, and 55% supported capping the price of automobiles!
These results make it clear that Americans don't understand the negative consequences of price caps. Given the clear economic consensus that artificial price ceilings lead to product shortages, black markets and other unfavorable outcomes, the Center for Responsible Lending's insistence on price caps is itself irresponsible. Their use of flawed public surveys to justify their positions is disingenuous.
At times, the sheer level of ignorance exhibited by our fellow citizens leads one to question whether there is really is hope of ever turning things around. This is one of those times.
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