These people made it all the way through school and to their present positions in life, probably without ever having learned how supply and demand regulate prices. As far as they're concerned, the only way to regulate prices is to legislate them.
Everything is top-down, with a dose of "If we say it often enough, it will come true." Which tells me that they might have taken history classes, but they never really learned from other people's mistakes.
Heeeerrrree they come!! Shortages!! Yee HAA! I will take your shut downs, your supply chain woes, and raise! Bastiat laid this out clearly 200 odd years ago, one would hope someone in "economics" would have a clue today.
Yep. If you decide to control prices by fiat instead of letting supply and depend reach a clearing price, you find that you've traded control of price for control of supply. Presto, supply crash. Next step: try to mandate production, preferably via a five-year plan, and ration in the meantime. Or just blame the shortages on the kulaks and start eliminating them. That will eliminate some demand.
Now, now, comrade. You're a wage slave already, aren't you? You're not free to take your neighbor's stuff on terms that suit you without consulting his unfair views on the subject. We're offering Utopia, but you act as though there were menace involved. What have we ever done to excite your suspicion?
Last week I drove from Ft Myers Florida to Indiana and the price for gas was almost always at $3.59 with a deviance of about .05 when it was not exactly $3.59 per Gallon,,,,,, the whole time I' was driving.... It sure seemed like price fixing to me and a command economy
Every year I take this trip, and never has the pricing been so uniform as this trip
These people made it all the way through school and to their present positions in life, probably without ever having learned how supply and demand regulate prices. As far as they're concerned, the only way to regulate prices is to legislate them.
ReplyDeleteEverything is top-down, with a dose of "If we say it often enough, it will come true." Which tells me that they might have taken history classes, but they never really learned from other people's mistakes.
ReplyDeleteLittleRed1
Heeeerrrree they come!! Shortages!! Yee HAA! I will take your shut downs, your supply chain woes, and raise!
ReplyDeleteBastiat laid this out clearly 200 odd years ago, one would hope someone in "economics" would have a clue today.
Yep. If you decide to control prices by fiat instead of letting supply and depend reach a clearing price, you find that you've traded control of price for control of supply. Presto, supply crash. Next step: try to mandate production, preferably via a five-year plan, and ration in the meantime. Or just blame the shortages on the kulaks and start eliminating them. That will eliminate some demand.
ReplyDelete^ That is the end state of socialism- slavery, because no one wants to work for free.
ReplyDeleteNow, now, comrade. You're a wage slave already, aren't you? You're not free to take your neighbor's stuff on terms that suit you without consulting his unfair views on the subject. We're offering Utopia, but you act as though there were menace involved. What have we ever done to excite your suspicion?
ReplyDeleteLast week I drove from Ft Myers Florida to Indiana and the price for gas was almost always at $3.59 with a deviance of about .05 when it was not exactly $3.59 per Gallon,,,,,, the whole time I' was driving.... It sure seemed like price fixing to me and a command economy
ReplyDeleteEvery year I take this trip, and never has the pricing been so uniform as this trip
Greg
Nice...and that worked out so well when Nixon did it. I remember them glorious results in the mid and late seventies...
ReplyDelete