Jack wrote:Umm? Why not let price work as the rationing mechanism?
Backpacker wrote:Jack wrote:Umm? Why not let price work as the rationing mechanism?
Because the higher prices rise the greater the risk of recession. As prices rise businesses will only increase the price for their goods and services to the consumer to cover the higher cost of gas. In addition, a price increase will not really spur most middle or upper middle class or wealthy to conserve. We need to have rationing across the board so that all will have to conserve, including the upper crust.
Umm? Why not let price work as the rationing mechanism?
jato wrote:+1 for free market.
Xelat wrote:So we end up in a situation where the lower class is screwed (as they are already) and that further exacerbates class tension.
. . .
At least forced rationing institutes culture change systemwide.
Xelat wrote:So we end up in a situation where the lower class is screwed (as they are already) and that further exacerbates class tension.
Aaron wrote:Umm? Why not let price work as the rationing mechanism?
As if there will be a choice.
Backpacker wrote:The thought of ... peak electrical demand rate hikes
smallpoxgirl wrote:Xelat wrote:So we end up in a situation where the lower class is screwed (as they are already) and that further exacerbates class tension.
I think you hit the nail on the head. American society is held together with sticky tape and bailing wire. The "free market" equates to Bill Gates continuing to jet set around the world, while thousands of people starve to death in the streets of Seattle. At some point there will be enough hungry people that they will be unwilling to passively starve, and will lynch Bill Gates, eat his food, and squat his mansion. Admittedly it probably won't be a good long term solution to their problem, but starving people can't worry too much about the long term. The government is unlikely to ever let things get to that extreme and will take steps to control prices before that ever happens.
Xelat wrote:Although I don't think either method is all that sound
+2 for rationing.
Jack wrote:Xelat wrote:Although I don't think either method is all that sound
+2 for rationing.
Really? Let's take a look at rationing. First of all, there are functionally three classes of people. The poor, the middle-class, and the rich.
Notice that rationing will tend to keep prices low while attempting to restrict demand. So you have several ways you can proceed. If you distribute some sort of ration ticket or coupon, then the document will acquire a value of its own and will trade in the open market. You can restrict or prohibit such trade; however, this merely changes the price dynamics. Under such scenario the rich would purchase coupons sufficient to their needs from the poor. This means that the entire rationing scheme becomes a form of taxation and income transfer. The middle-class will participate in the market is both buyers and sellers. Don't expect broad political support for such transfer payments!
You can implement variety of enforcement mechanisms to preclude such action, but notice that the administrative costs increase substantially.
You also face the question of allocation. Is the ration based on number cars? On number of drivers? On type of employment or business? Whatever mechanism you choose is sure to create economic distortions and nonsensical situations. Furthermore, the more complex and pervasive the regulations become the more they cost to enforce. If however you choose not to enforce them the black market will expand.
The original post also spoke of regulating thermostats and home heating. Are the thermostat police to also control the use of stoves, ovens, and dryers? How does one prevent homeowners from hot wiring the thermostat? Or packing it in ice and styrofoam? Are we to have no knock warrants for our thermostat police?
Let us face a simple reality. The rich get what they want. If they cannot get it in the US, and they will move where they can get it. The poor will be tossed off the sled to be consumed by the wolves. And the middle-class will scratch and claw to avoid fate of the poor.
Kind of cool!
Return to Conservation & Efficiency
Users browsing this forum: No registered users and 7 guests