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A shortage is when people can't obtain something they need. If there is suddenly only enough water to hydrate 3.5 billion people, and prices quickly rise and w

A shortage is when people can't obtain something they need. If there is suddenly only enough water to hydrate 3.5 billion people, and prices quickly rise and water is distributed to the people who can afford it, do we not have a water shortage because 3.5 billion people cannot afford to drink? Or do we say, "The market is working efficiently, the concept of shortage makes no sense". There's also the imperfect nature of the market. I believe during the recent hops shortage, there were brewers unable to get hops at any price because of distance, communication, time, etc. Which reminds me, I don't know where this falls but suppose you want hops and all the hops have not just been sold but used. You have to wait until next harvest. Is that not a shortage?

jordanb 12y ago
> A shortage is when people can't obtain something they need. I need a private jet. I can not obtain one. Does that mean there is a shortage of private jets? Maybe I can insist that there's a shortage of private jets "at a reasonable price?"
- sliverstorm 12y ago
  It should be obvious that "need" is subjective. Additionally, "shortage" implies atypical conditions. Private jets have always been expensive.
- dagw 12y ago
  I can not obtain one. Of course you can. Maybe not buy one outright, but you can probably charter one for $8000-10000 for a short round trip. Sure it's not cheap, but $10000 is definitely within the realm of what anybody with a decent job can save up for/borrow for something the really need. Most people who feel they really need a car for example manage to spend that sort of money and often much more. Or perhaps you actually didn't need to private jet.
nradov 12y ago
Your example is wrong. Outside of short-term supply disruptions caused by natural disasters or violence, commodity shortages only ever occur when corrupt and incompetent governments fix prices below the market rate. We're running out of water in California because the state and local governments practically give it away to farmers who do silly things like growing water intensive crops in the desert.
- sliverstorm 12y ago
  Outside of short-term supply disruptions caused by natural disasters or violence I didn't realize we were supposed to throw out these cases. They seem important to me.

jordanb 12y ago

> A shortage is when people can't obtain something they need. I need a private jet. I can not obtain one. Does that mean there is a shortage of private jets? Maybe I can insist that there's a shortage of private jets "at a reasonable price?"

sliverstorm 12y ago
It should be obvious that "need" is subjective. Additionally, "shortage" implies atypical conditions. Private jets have always been expensive.
dagw 12y ago
I can not obtain one. Of course you can. Maybe not buy one outright, but you can probably charter one for $8000-10000 for a short round trip. Sure it's not cheap, but $10000 is definitely within the realm of what anybody with a decent job can save up for/borrow for something the really need. Most people who feel they really need a car for example manage to spend that sort of money and often much more. Or perhaps you actually didn't need to private jet.

nradov 12y ago

Your example is wrong. Outside of short-term supply disruptions caused by natural disasters or violence, commodity shortages only ever occur when corrupt and incompetent governments fix prices below the market rate. We're running out of water in California because the state and local governments practically give it away to farmers who do silly things like growing water intensive crops in the desert.

sliverstorm 12y ago
Outside of short-term supply disruptions caused by natural disasters or violence I didn't realize we were supposed to throw out these cases. They seem important to me.