For once the commodities have been sold that were already on the market when their price was authoritatively fixed at a level below that demanded by the situation of the market, then the emptied store-rooms are not filled again. Charging more than a certain price is prohibited, but producing and selling has not been made compulsory. There are no longer any sellers. The market ceases to function. But this means that economic organization based on division of labour becomes impossible. The level of money-prices cannot be fixed without overthrowing the system of social division of labour. Ludwig Von Mises
About This Quote

You do not create inflation when the price of a commodity is set below that of its market value. The high price of commodities was already on the market when they were priced at a low level. Solow's paper suggests that if prices are not allowed to rise, the goods cannot be produced because there are no sellers. This means that economic organization based on division of labour becomes impossible. The level of money-prices cannot be fixed without overthrowing the system of social division of labour.

Source: The Theory Of Money And Credit

Some Similar Quotes
  1. It’s probably not just by chance that I’m alone. It would be very hard for a man to live with me, unless he’s terribly strong. And if he’s stronger than I, I’m the one who can’t live with him. … I’m neither smart nor stupid,... - Coco Chanel
  2. I am not an angel, ' I asserted; 'and I will not be one till I die: I will be myself. Mr. Rochester, you must neither expect nor exact anything celestial of me - for you will not get it, any more than I shall... - Unknown
  3. The really important kind of freedom involves attention, and awareness, and discipline, and effort, and being able truly to care about other people and to sacrifice for them, over and over, in myriad petty little unsexy ways, every day. - David Foster Wallace
  4. They say a good love is one that sits you down, gives you a drink of water, and pats you on top of the head. But I say a good love is one that casts you into the wind, sets you ablaze, makes you burn... - C. Joybell C.
  5. Keep your best wishes, close to your heart and watch what happens - Tony Deliso
More Quotes By Ludwig Von Mises
  1. Only stilted pedants can conceive the idea that there are absolute norms to tell what is beautiful and what is not. They try to derive from the works of the past a code of rules with which, as they fancy, the writers and artists of...
  2. The biological equipment of a man rigidly restricts the field in which he can serve.
  3. Science does not give us absolute and final certainty. It only gives us assurance within the limits of our mental abilities and the prevailing state of scientific thought.
  4. The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inï¬â€šicted by bad governments. The state can be...
  5. Used to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown...
Related Topics