2 ms·
I think the different between your example is that the stratosphere has no system of property rights, so their simly is no market. Helium is different, their i
by nickik 10y ago
I think the different between your example is that the stratosphere has no system of property rights, so their simly is no market.
Helium is different, their is no clear market failure of any kind. As government provided helium will start to run out, future prices will rise. Potential gain from increasing production will raise as well. When prices rise many people will move to alternatives softening the rise in price.
Once the prices are higher, their will be a huge insentive to figure out a way to produce it economically.
The equillibrium price will probebly be higher then now, but currently we are living in an artefical low, so setting the goal of continuing this current low price is simply unrealistic even if government manages it, to keep the price this low they would have to subsidise it eventually and I don't think that is a worthwhile thibg for governemnt.