I wish I'd learned math, stat, and econ as a kid

so I'd have some native fluency in these essential languages.

I love Marginal Revolution for the entertaining way it brings me up to speed on the basics. Today, Tyler posted the most straightforward explanation of why price controls simply don't work that I have ever seen.

The bottom line: when money can't be used to pay for the full value of a product, other currencies are brought into play (think time: all that waiting in line in communist paradises, for example). Money quote:

It's very important to notice that that the shop owner gets your money but does not get your time. Thus, money expenditures are a transfer but time expenditures are a waste. Money expenditures = controlled price times*controlled quantity. Time expenditures = time price*controlled quantity so the shaded area indicates the waste.

It's also important to notice that the total price is higher than the market price! A price control, therefore, doesn't even necessarily reduce prices!