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We have decades of experience of insurance companies and utilities not being able to charge whatever they want without causing shortages. Now, in California th
by skhunted 3y ago
We have decades of experience of insurance companies and utilities not being able to charge whatever they want without causing shortages. Now, in California there is an example where this price limitation is causing some companies to pull out of the market. Price controls can be used without causing a shortage and they can be used in a such a way to cause a shortage. Price controls in and of themselves do not cause anything. It’s how they are implemented that matters.
- baggy_trough 3y agoThe consensus of economists is that you are wrong.
- skhunted 3y agoWhat economist is willing to say that there is a shortage of electricity where electric companies are regulated in the U.S. because there is a cap on how much they can charge? In almost every state there is not a shortage of companies willing to provide car or home insurance even though they are not allowed to charge whatever they want. Which economist is going to say that in those states the price control on insurance companies is causing a shortage?