Prices are threads stitching together the fabric of our economy. They guide countless producers, here and abroad, to meet the most urgent demands of countless consumers. Prices enable the economic coordination of millions of individuals—each with his or her own unique preferences, skills, and resources—with no need for a central planner. They direct entrepreneurs and innovators, signaling where opportunities lie and where resources are most needed.
Prices are guardians of scarce resources, ensuring that these are allocated to their most valuable uses. Prosperity results from the encouragement given to the production of goods and services that people desire most.
