High Prices

When government intervenes with duties, price supports or fiat wage and price controls the signal that high prices is sending is diluted. As a result the necessary market and production adjustments are delayed.

An exception is goods or services that serve as status displays or virtue signalling. The high price of a Louis Vuitton purse is a feature not a negative. People are willing to pay the higher price because they gain status.

I could go on about virtue signalling and competitive wisdom but these are the exceptions to the general rule: Higher prices are a signal to buy less and make more.

Photo is of a flowering bush outside the peacock house we rented in Pasadena in the spring.