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High prices are exactly how the free market attracts additional resources to solve capacity problems. Legislative efforts to limit prices pretty much guarantee

High prices are exactly how the free market attracts additional resources to solve capacity problems. Legislative efforts to limit prices pretty much guarantees that additional capacity will not be forthcoming and that shortages and high prices will continue.

anoncake 7y ago
That's how you get an overbuilt construction industry and (even more) unemployed construction workers during the next recession. The "free" market is adequate for allocating resources to consumer goods but not for allocating them to entire industries.
- gwright 7y ago
  I gather you are asserting that real estate developers are incapable of determining when they are too late to the party and are constructing extra space that will never be occupied. Presumably you also believe that government bureaucrats are somehow better able to ascertain exactly when to stop issuing building permits so as to avoid "overbuilt" construction. And of course they will know when to resume issuing building permits also to ensure there are no shortages. How is it that these government bureaucrats are better able to predict demand and arrange for supply than market mechanisms and the free economic choices of individuals? You are making an argument for a planned economy over a free market, for limiting the freedom of individuals to invest as they see fit with their own resources in favor of giving power to government employees to block or to subsidize their favored economic activity. The historical track record for central planning is overwhelmingly negative. I don't understand why people continue to advocate for it.
  - anoncake 7y ago
    > Presumably you also believe that government bureaucrats are somehow better able to ascertain exactly when to stop issuing building permits so as to avoid "overbuilt" construction. Strawman. That is not the question here.
    - gwright 7y ago
      You claimed that the free market was incapable of allocating the resources correctly for an "industry". And now you are suggesting that my assumption that you were implying that the government should do the allocating is also incorrect. So what is your alternative suggestion?
      - anoncake 7y ago
        > And now you are suggesting that my assumption that you were implying that the government should do the allocating is also incorrect. Wrong. Please read what I write instead of "presuming" what I might think.

anoncake 7y ago

That's how you get an overbuilt construction industry and (even more) unemployed construction workers during the next recession. The "free" market is adequate for allocating resources to consumer goods but not for allocating them to entire industries.

gwright 7y ago
I gather you are asserting that real estate developers are incapable of determining when they are too late to the party and are constructing extra space that will never be occupied. Presumably you also believe that government bureaucrats are somehow better able to ascertain exactly when to stop issuing building permits so as to avoid "overbuilt" construction. And of course they will know when to resume issuing building permits also to ensure there are no shortages. How is it that these government bureaucrats are better able to predict demand and arrange for supply than market mechanisms and the free economic choices of individuals? You are making an argument for a planned economy over a free market, for limiting the freedom of individuals to invest as they see fit with their own resources in favor of giving power to government employees to block or to subsidize their favored economic activity. The historical track record for central planning is overwhelmingly negative. I don't understand why people continue to advocate for it.
- anoncake 7y ago
  > Presumably you also believe that government bureaucrats are somehow better able to ascertain exactly when to stop issuing building permits so as to avoid "overbuilt" construction. Strawman. That is not the question here.
  - gwright 7y ago
    You claimed that the free market was incapable of allocating the resources correctly for an "industry". And now you are suggesting that my assumption that you were implying that the government should do the allocating is also incorrect. So what is your alternative suggestion?
    - anoncake 7y ago
      > And now you are suggesting that my assumption that you were implying that the government should do the allocating is also incorrect. Wrong. Please read what I write instead of "presuming" what I might think.