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Price regulation works effectively for water and car insurance and hasn’t led to black markets (at least that I’m aware of).
by Guest42 7y ago
Price regulation works effectively for water and car insurance and hasn’t led to black markets (at least that I’m aware of).
- rukittenme 7y agoAnd it doesn't work for housing and about a million other goods and services that have been subject to price controls. Just look at California's water shortage issues. Water prices are basically fixed so huge farms suck up all the water to irrigate a desert while ordinary people are told to stop bathing. Seems like an externality of price regulation, no?
- AnimalMuppet 7y agoCar insurance is price regulated? In what country (or countries)? I'd be surprised if it is where I live...
- Guest42 7y agoAll of the US, each state has a department of insurance edit: wouldn’t let me reply, I know they regulate existing product prices and that new products need to be filed and that states have different laws regarding coverage limits and litigation details
- AnimalMuppet 7y agoDo they regulate prices? Or just coverages?
- WalterBright 7y agoPrice regulation of water has resulted in rationing and shortages. Car insurance prices aren't regulated around here.
- Guest42 7y agoIt’s not perfect but it prevents a scenario where Fortune 500 companies buy up as much as possible and use their position as a source of profit growth. What country do you live in?
- WalterBright 7y agoIf prices are allowed to float, Fortune 500 companies can only buy up supply if they will be willing to pay the market price.
- pbhjpbhj 7y agoWhat about a bimodal model, people have a right to a reasonable volume of water. Companies have to both pay for the water (at the price-fixed rate) and have to acquire a right (like a ration token) to have water. People then would always be able to afford to buy enough water to sate them, but companies need to buy their tokens in order to get water. Most people would probably sell their tokens back to the water company, who would sell them on at a profit. But equally you could save them for times of water crisis when the token price soars and pay off your own water bills. Tell me why this is stupid.
- WalterBright 7y agoThat proposal is just a complicated and inefficient bureaucratic reinvention of a supply & demand marketplace. Just let S&D do its thing and take its course, and people will get water.
- int_19h 7y agoSome people will get water. And some will get priced out of the market.
- WalterBright 7y agoHigher prices INCREASE the supply. I.e. MORE people get water.