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Even if there is no additional supply available, there still could be some benefit. If the price of gas were far higher, people may not fill up their tank all
by ddlatham 14y ago
Even if there is no additional supply available, there still could be some benefit.
If the price of gas were far higher, people may not fill up their tank all the way and only purchase what they really need. So instead of the first X people getting full tanks and the next Y people getting nothing from an empty gas station, in some scenarios everyone could get a smaller amount.
However, the issue of poor people not having access at higher prices is still a problem. It may be better served by having the government step in to provide each person $Z in gas money (paid for by a tax on "gouging") rather than an outright gouging ban.
- adamsmith 14y agoYou highlight really good points. I guess at scale the government does exactly what you propose (step in and allocate supply per person), for example rationing in World War 2.
- eru 14y agoYes. But don't give people gas money. Just gives them money.
- ddlatham 14y agoAgreed. I say "gas money" above so people envision the poor being able to pay for the gas at high prices, but the whole point of keeping it based on taxes and currency is so that the market can balance between alternatives besides buying gas as well.