The NRA: How Price-Fixing Perpetuated the Great Depression

The Freeman

summary:

The article recounts the history of the Depression Era program that engaged in price fixing.  It was based upon a theory that higher wages and higher prices would stimulate the economy.  It didn't work like the boosters thought it would.  The policies stifled innovation.


comment:

It is my contention that this policy still exists and is in operation today.  I think it explains why the molten-salt reactor won't be adopted, or any other innovative energy source won't be implemented.  Lower prices are not in the interests of powerful economic forces, hence the reluctance to innovate.  If there's too much innovation in a field of endeavor, it will invariably lead to lower prices.

I believe that lower energy prices will enable a lot of good things to happen for the economy.  It is rather curious to me that a way towards lower energy prices has been available for all these years, but is being constantly set aside for questionable reasons.

I also believe that the conquest of space will open up vast resources, which will enable prices for these commodities to be a lot lower than they are now.  But this progress is being held up for questionable reasons as well.  For instance, if the space budget was as big as it was in the sixties, it would rival national defense as a priority.  What would you rather do, go to war, or prevent war by ending scarcity?  Space has the promise of doing that.