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I presume a shortage is far more destabilizing for the most essential things than a higher price. Plus the government can act as a central buyer to back those
by ivankirigin 7y ago
I presume a shortage is far more destabilizing for the most essential things than a higher price.
Plus the government can act as a central buyer to back those who have the greatest needs. That and companies should be responsible for providing protection for employees
- nitrogen 7y agoHigher prices, especially when caused by profiteering, exacerbate shortages. The price encourages more hoarding and profiteering. The lag in production and inventories means that this type of "information" takes a long time to flow to the original producers and then back to consumers, and in the mean time more inventory is in the hands of profiteers and fewer average people are able to protect themselves.