Re:Is It Time to Rethink Globalized Supply Chains?
by eru on Friday March 20, 2020 @12:43AM
(#22634959)
What would that legislation accomplish?
Companies already bear the costs and benefits of their resilience. So it's already internalised.
You could, however, pass a law that specifically allowed people to charge whatever prices they can get a customer to agree to pay; and ban all laws outlawing such pricing.
That way you would give companies an incentive to be especially resilient in the face of disruptions.
Right now, you are mostly not allowed to sell hand sanitiser for thousand dollars a bottle. So the incentives to become so resilient that you are still producing when everyone else has shut down and you can charge these kinds of prices, is kind of dulled.
Companies already bear the costs and benefits of their resilience. So it's already internalised.
You could, however, pass a law that specifically allowed people to charge whatever prices they can get a customer to agree to pay; and ban all laws outlawing such pricing.
That way you would give companies an incentive to be especially resilient in the face of disruptions.
Right now, you are mostly not allowed to sell hand sanitiser for thousand dollars a bottle. So the incentives to become so resilient that you are still producing when everyone else has shut down and you can charge these kinds of prices, is kind of dulled.