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Resource allocation that favors public wellbeing over market efficiency.
by formercoder 7y ago
Resource allocation that favors public wellbeing over market efficiency.
- jolmg 7y agoMarket efficiency is precisely about public wellbeing. Concretely, what are you suggesting? In face of limited supply, there's only 2 choices: keep the prices low or raise the prices. The former accelerates supply depletion; the latter helps maintain supply availability. You're asking for the government to come in and pull a third choice out of their sleeve, but I don't see such a choice. If you're the government, concretely, what would you do? EDIT: Now, if you suspect price gouging, that's different. wtfrmyinitials was referring to a genuine shortage, though.
- formercoder 7y agoThat’s true if the proposed intervention is simply price caps, as opposed to rationing.
- daxorid 7y agoA bottle of isopropanol, prior to this event, cost approximately 79 cents. The only change to resource allocation we need is a psychological one: specifically, to accept the idea that prepping, even at a very small level, is not insane.
- DuskStar 7y agoAnd does what? Mandates that hand sanitizer not exceed some price/oz? There'll still be shortages, because some whales will buy it all. Mandate caps on the amount that a person can buy? I suppose hospitals are fucked then, and that's assuming that people don't circumvent the restrictions anyways. So the only way to "solve" the issue is to add more supply, and "price through the roof" is as good a way to get more supply (and possibly better) as the government mandating more production.