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>The Law of Supply & Demand is always in play, meaning price caps result in shortages. I think people who want prices controlled are thinking of doing it by co
by vba616 3y ago
>The Law of Supply & Demand is always in play, meaning price caps result in shortages.
I think people who want prices controlled are thinking of doing it by controlling demand via rationing. Some people don't get all the power they want at any price, so others can get a minimal amount.
If someone wrote an OS that starved low priority processes of run time, you wouldn't say it was a law of nature, you'd say the scheduler should be fixed, right?
- WalterBright 3y agoRationing leads to mis-allocation to people who don't need it.
- vba616 3y agoI'm not entirely sure what you mean by that. Is it meant to be a logical truth, independent of empirical facts? To me, it's a contingent fact even though it often is true. Nor do I see any reason to be certain that rationing which does cause some misallocation necessarily creates net harm. Do you believe that markets can be evaluated based on some independent standard of appropriate allocation of goods and services?