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Adriene: Welcome to Crash Course Economics. My name is Adriene Hill Jacob: And Im Jacob Clifford, and today were going to talk about good intentions, and how they can go wrong. Price controls can derail markets. And subsidies can distort them. Adriene: And deadweight isnt just a good description of your ex. [Theme Music] Jacob: Lets say Craig becomes president and he caps the prices of all consumer goods. He argues that the lower price will help everyone -- the poor, the middle class, small businesses, everyone. Maybe a few people might fall for this policy, but not you. You watch Crash Course Economics, which means youre funny and smart and attractive, and you understand why this is a horrible idea. This example seems far fetched, but it actually happenednot the part of Craig being president. Instead it was President Richard Nixon. In the early 1970s, Nixon established a 90 day price and wage freeze designed to fight inflation. The general public supported the idea, but eco