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And rationing can address that problem. These complex issues are never so simple.



Rationing makes simple things complex. For example, rationing assumes that everyone has exactly the same need. Trying to fix that is hopelessly complicated.


I don't see how that's an argument against anti-price gouging laws though. It's not like price gouging solves that problem. Fundamentally a shortage is just never going to give perfect results.

Even simplistic rationing is at least relatively fair and can ensure at least a base level of availability. For the major necessities this can be pretty reasonably accounted for to ensure nobody suffers from some extreme deprivation.

It also lets you at least put some somewhat predictable cap on how fast resources are going out. Allowing price gouging doesn't let you predict much of anything, and I'm not sure it even slows the outflow given the uncertainty of these situations.


How high prices work is:

1. only those who really need it buy it

2. others are encouraged to increase supply

For example, before anti-gouging laws, when a hurricane interrupted the gas supply, people from a state over would immediately fill jerry cans with gas and drive into the disaster zone, selling gas out of the back of their pickups.

Anti-gouging laws put a stop to that. Now nobody gets gas until FEMA gets around to it.

I've talked to people who lived through WW2 gas rationing. It was a mess of mis-allocation. People who didn't need their ration turned into criminals selling it on the black market. People who needed it turned into criminals buying it on the black market. It was pure political theater.


This is not the whole story, by any means.

Those who buy it are those who can afford it. They also (think) they need it, for some reason. That can include the intention to legally resell it. Buying suddenly comes with even more time pressure. Buying now becomes both a hedge and speculation, with zero legal risks.

Sure, people bringing in supplies on their own sounds good. It can even be good. But how much does it actually bring in? Does it come with other problems, like additional stress on infrastructure? If this really is such a great thing, I don't see how it should be wholly incompatible with anti-price gouging laws. If you want to specifically incentivize private transport of goods from out of the area, you don't have to allow them to be sold for any price, nor do you have to allow it for goods already in the area.

As for the black market, I'm not sure that's a bug. It makes it harder, and adds some risk, to acquiring more. If you actually need it enough, you'll do it. There some be some correlation between actual need and willingness to participate in the black market. With proper use of the discretion available to law enforcement, maybe this even enhances how well the goods end up distributed. That's a big "with" but still.


> As for the black market, I'm not sure that's a bug.

Rationing implies a black market must be illegal. Besides, it enriches random people who don't need gas, at the expense of the people who went to the effort to supply it.

If that isn't a topsy-turvy unjust, inefficient and inequitable way to run an economy, I don't know what is.

Rationing suffers from the delusion that bureaucratic rules can distinguish who needs something and who doesn't, and denial of the existence of normal human motivations.


Then you get a black market... it's almost a cobra effect.


Sure. I'd guess it still adds enough friction to help result in a better distribution of goods in the end. The time, effort, and (legal) risk you are willing to take to acquire something should correlate decently with how much you really need those goods.




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