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Is the pure market outcome not that someone creates a competing insulin company? Patents and the buying practices of Medicare (both government interventions in
by jahewson 2y ago
Is the pure market outcome not that someone creates a competing insulin company? Patents and the buying practices of Medicare (both government interventions in the market) would seem to be the two biggest blockers.
- polski-g 2y agoYes. The pure market solution to "overcharging" people seeking housing is that people with available housing (near Palisades) go stay in Nebraska for six months, and sublet their existing available residence for $10k/mo. But politicians in California have forbidden the market from functioning in such a way -- so those with housing (possibly) available chose not to offer it because the price isn't worth it.
- jahewson 2y agoExactly - and it sounds harsh at first but consider that a family of four put up in a hotel for a month is going to cost a figure close to that and the insurance company is paying for it. Plus the timescales involved go beyond “emergency” to actually effecting the market. LA is down 5000+ properties for the next 3+ years - a genuine reduction in supply that will drive prices upwards. Price caps don’t limit demand and instead cause supply shortages, which we should expect to see in LA.