The Importance of Market Set Prices

Donna Brazile: I think regulation is sometimes motivated by a concern for asymmetric bargaining power and sometimes out of paternalism. She says the big increases in safety, shorter work week and higher wages were driven by increased productivity of labor, not by government regulation. "I don't think anyone who knows any economics at all can disagree about the importance of allowing prices and wages to move in response to market forces," she adds. 'Market set prices are really the key to the success of the whole system'