There is a single thought that unites the political parties of the left all over the world (from welfare state liberals to socialists and communists) and it is this: incentives don’t matter. And since prices are the mechanism that coordinates incentives and clears markets, it follows that prices don’t matter either.
What other explanation can there be for something senseless that is about to happen in California: A $15 minimum wage, soon to be mandated for almost every employee in the state?
I suspect that most of the delegates to the Democratic National Convention this summer sincerely believe that if a price is judged too low (for example, a wage), the government should push it up – and nothing bad will happen. If a price is judged too high (for example, a rent), the government should push it down and nothing bad will happen.
If you don’t think that prices matter – that is, if you don’t think that prices through their incentive effects impact behavior – it inevitably follows that almost every economic event is a disconnected event.