To really understand something you've got to reduce it to its principles.

We economists don't know much, but we do know how to create a shortage. If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas.

When something goes wrong, the natural tendency is to say, "By God, we need to pass a law and do something."

What would the people who sold us goods do with the money? They'd get dollars. What would they do with the dollars? Eat them?!

The most important single central fact about a free market is that no exchange takes place unless both parties benefit.

Is there some society you know of that doesn't run on greed? You think Russia doesn't run on greed? You think China doesn't run on greed? What is greed?

Legalizing drugs would simultaneously reduce the amount of crime and raise the quality of law enforcement. Can you conceive of any other measure that would accomplish so much to promote law and order?