Replies

RE :&rdquoWhen we talk of prices we're talking about rationing by price instead of some other method.
As to desirable consequences the question is desirable to whom? And why?”

This is where Sowell is at his best. He describes prices in a market system as a thermometer that tells you your body temperature.

The thermometer reads too high and you better do something about it.

But price controls is like saying the thermometer cant go up too fast regardless of your real temperature because that is unfair.

So NJ drivers get little or no gas at fair prices, and they don't understand why. But it is fair. Or is it?

I’ve read a lot of Sowell’s books. Never read him covering price gouging during a disaster.

Shortages are being caused by electric outages and disabled transportation. This is a special case of a natural disaster causing a temporary small supply. Actually, demand is down too given people are not free to move about and do business as usual so that show how unnatural the supply is when you run shortages in a low demad period.

Price controls of the Nixon era were not about controlling the product but holding down inflation. Restricting the price of an abundant commodity that's in demand didn't and won't work.

That is not the situation in NJ. The shortage is electrical power not gasoline and fuel in the ground may as well be on the moon.
What is needed is either more electricity to the stations or gas from some other outlet or preferably both.
Right now the stations with power are unwilling cartel among stations without power. What sort of market is that?

Right now the market, such as it is, is just about non-functioning. First because of state controls and then because competition is nearly impossible. It's like that thermometer but one with no markings.

If a station raised its prices and I didn't want to pay it, where would I go? No station needs to lower prices to attract customers and no station would lose customers by charging a few cents more per gallon.

It appears to me that no one really knows exactly what their goal is and so it's marathon or not, NG a little bit maybe, union control of work for certain..unless, deliver the goods quickly or let out bids to vendors....on and on...no one seems to know why they're doing what they're doing. They know how but not the why.