Re:How Puerto Rico Became a Tax Haven for the Super Rich
by cimmanom on Wednesday September 19, 2018 @06:09AM
(#18023129)
When it’s physically not possible to increase supply sufficiently (in the relevant timeframe) to meet demand at a price affordable by everyone who needs a good in order to survive; and if you want to distribute those goods in such a way that the maximum number of people do survive; your only option will be price controls and rationing.
If it were possible to increase supply sufficiently AND the markets were perfectly efficient (and cows were spherical), price controls wouldn’t be necessary - but these controls were typically introduced after disasters where people died because other people were jacking up prices to levels most couldn’t afford.
Even if it truly is possible to increase supply you may nevertheless have price increases because disasters induce demand and encourage hoarding. The solution here IMO would be to cap prices but subsidize them in order to incentive suppliers to increase supply.
If it were possible to increase supply sufficiently AND the markets were perfectly efficient (and cows were spherical), price controls wouldn’t be necessary - but these controls were typically introduced after disasters where people died because other people were jacking up prices to levels most couldn’t afford.
Even if it truly is possible to increase supply you may nevertheless have price increases because disasters induce demand and encourage hoarding. The solution here IMO would be to cap prices but subsidize them in order to incentive suppliers to increase supply.