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It's usually quicker and easier to determine how much each person reasonably needs to get them through an emergency situation, than to predict how high the pric
by wtallis 7y ago
It's usually quicker and easier to determine how much each person reasonably needs to get them through an emergency situation, than to predict how high the price could be driven by hoarders and scalpers. And handouts to poor people to cover the scalper's surcharge will quickly result in the scalpers charging that much more—cf. college tuition, for a non-emergency example.
- eru 7y agoGood point. A discussion about relative elasticity of demand and supply for college tuition, rents and eg face masks would be enlightening. Most of higher education is about signalling. Hoarders and scalpers don't drive up the prices, they just reveal a market clearing price. Attempts to restrict market clearing mechanisms make scalpers and hoarders spring up in the first place. In a less restricted economy, producers of masks would capture the price increases. And that would serve as a good incentive for them to keep extra capacity around. If your ration coupons for face masks were freely tradeable, the resulting system wouldn't look that much different from letting the price of face masks themselves freely fluctuate; and giving people the right amount of money. (It would still be a bit more awkward in comparison.)