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IPFS News Link • Free Market

The Self-Regulating Nature of the Price System

• by Jacob G. Hornberger

By the same token, retail storeowners and homeowners use the price system to attract consumers and people who are looking for a place to live. I used Austin, Texas, as an example to demonstrate my points about the price system, the fundamental right of freedom of travel, and free-market principles. 

Two days ago, the Wall Street Journal published a story about Westlake, Texas, which is located about 10-15 minutes from downtown Austin. The article stated that the median price of a home in that area is $2.65 million. It is virtually impossible to find a home cheaper than $1 million.

My hunch is that most people, especially illegal immigrants, are not going to be moving to Westlake anytime soon. That's because they simply cannot afford to pay those prices for housing. 

The situation in Westlake is a good example of how the price system works. The area is obviously extremely attractive and, thus, very popular. The Journal's article states: "Known for its natural beauty — rolling hills, trees, lakes and trails — Westlake encompasses the city of West Lake Hills and a handful of other neighborhoods that feed into the coveted Eanes Independent School District…. Local restaurants and shops are clustered along main thoroughfares that offer convenient Austin city access."