Re:The Suicide of Venezuela
by ctdonath on Friday April 29, 2016 @07:47AM
(#11595042)
Ah, the "spherical chicken" argument.
Something has to limit demand, as there is not unlimited supply. If prices are not allowed to rise to where demand slows (to a fair and equal exchange of value), and nothing else increase the cost of acquisition (awaiting queues, covenants/agreements, paperwork, background checks, etc), then the only way to limit demand on a limited supply is simply running out of supply.
Price controls don't work. They may not completely destroy the supply, but they will at least debilitate it, functioning in a way many come to accept as normal - not realizing the resulting damage.
Something has to limit demand, as there is not unlimited supply. If prices are not allowed to rise to where demand slows (to a fair and equal exchange of value), and nothing else increase the cost of acquisition (awaiting queues, covenants/agreements, paperwork, background checks, etc), then the only way to limit demand on a limited supply is simply running out of supply.
Price controls don't work. They may not completely destroy the supply, but they will at least debilitate it, functioning in a way many come to accept as normal - not realizing the resulting damage.