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Generally, I agree with you. But, I am not sure if a momentary shortage is enough to create this incentive years out, when the price will likely normalize. Th

Generally, I agree with you. But, I am not sure if a momentary shortage is enough to create this incentive years out, when the price will likely normalize. The other reason for high prices beyond inducing more sellers is to be a form of rationing based on ability to pay. And in a crisis with necessities people do not like this method emotionally and prefer a more democratic method.

WalterBright 6y ago
> a form of rationing based on ability to pay That is not rationing.
- rileymat2 6y ago
  There is a pedantic argument to be made about the exact definition of rationing, but "rationing based on the ability to pay" as a phrase is a very common description or turn of phrase, Google confirms this.
  - WalterBright 6y ago
    That isn't how the word is defined. Google the definition of rationing :-) People misuse language all the time, such as using "literally" for emphasis rather than description, but when talking economics one should stick with what the economic terms actually mean. For a more relevant example, "free markets" do not mean you can pickup things at the market at no cost.
    - vageli 6y ago
      > That isn't how the word is defined. Google the definition of rationing :-) I did as you suggested and got this: > allow someone to have only (a fixed amount of a certain commodity). So the definition does not specify the function by which resources are distributed. The "fixed amount" can be a schedule based on income and not violate the definition.
      - WalterBright 6y ago
        Um, a free market does not "allow" someone to have only a "fixed" amount. Trying to torture the definitions of words to make this work to save a rhetorical point is not going to work with me.
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      - sokoloff 6y ago
        Wait? Did you really just say that a “fixed amount” is equivalent to what amounts to linear function of your income?
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        vageli 6y ago
        I guess I took the fixed value to be the function, and not the... value. I see my misunderstanding now.

WalterBright 6y ago

> a form of rationing based on ability to pay That is not rationing.

rileymat2 6y ago
There is a pedantic argument to be made about the exact definition of rationing, but "rationing based on the ability to pay" as a phrase is a very common description or turn of phrase, Google confirms this.
- WalterBright 6y ago
  That isn't how the word is defined. Google the definition of rationing :-) People misuse language all the time, such as using "literally" for emphasis rather than description, but when talking economics one should stick with what the economic terms actually mean. For a more relevant example, "free markets" do not mean you can pickup things at the market at no cost.
  - vageli 6y ago
    > That isn't how the word is defined. Google the definition of rationing :-) I did as you suggested and got this: > allow someone to have only (a fixed amount of a certain commodity). So the definition does not specify the function by which resources are distributed. The "fixed amount" can be a schedule based on income and not violate the definition.
    - WalterBright 6y ago
      Um, a free market does not "allow" someone to have only a "fixed" amount. Trying to torture the definitions of words to make this work to save a rhetorical point is not going to work with me.
      - deleted 6y ago
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    - sokoloff 6y ago
      Wait? Did you really just say that a “fixed amount” is equivalent to what amounts to linear function of your income?
      - deleted 6y ago
        [deleted]
      - deleted 6y ago
        [deleted]
      - vageli 6y ago
        I guess I took the fixed value to be the function, and not the... value. I see my misunderstanding now.