An economics professor uses the run on toilet paper to explain bank runs

American Thinker ^ | 03/17/2020 | Andrea Widburg

[SeekAndFind]

One of the strangest manifestations of the threatened coronavirus epidemic in America is toilet paper hoarding. Justin Wolfers, an economics professor at the University of Michigan, has put together a tweet thread explaining why people are hoarding toilet paper. According to him, the motivation behind toilet paper hoarding is the same as the motivation behind runs on banks – people are afraid that, if they don’t keep up with others who want the same finite resource, then the resource will be gone.

The economics of toilet paper shortages is the same as bank runs. [thread]

Even if you’re not freaked out about a pandemic, you worry that everyone else is & they’ll stockpile to 🧻, & you don’t want to be the left paperless. So you stockpile to avoid being shut out by others.— Justin Wolfers (@JustinWolfers) March 4, 2020

So you run and get toilet paper not because you need dozens of rolls, but because you fear that others are going to stockpile leaving none for you.

And they’re buying because they fear (correctly) that you’re running to the store to stock up, leaving none for them.— Justin Wolfers (@JustinWolfers) March 4, 2020

So you run and get toilet paper not because you think society is about to crumble, but because you fear that others fear this. Fear of a run on toilet paper — like a run on banks — is enough to create an actual run.

And when the runs start we need help. (pun intended)— Justin Wolfers (@JustinWolfers) March 4, 2020

[Lurkina.n.Learnin]

Trots.

[moovova]

(1) If they're forced into quarantine, they'll need stockpiled supplies;
Check!!!
(2) if they're thrown out of work, they'll need stockpiled supplies; and
Check!!!
(3) if civil unrest should occur, they'll need to stay in their homes, and they'll need stockpiled supplies."
(...not quite there...)

[Daffynition]

[outofsalt]

"*BREAKING NEWS*"

I have Corona virus.
Phlegm at 11.

[joma89]

I already had tons of toilet paper and extra cash as well as many other items. This is called being prepared, folks.

I am not a full on prepper but I think I am going to become one. All of what is happening now is proof of how quickly society can simply stop functioning.

JoMa

[Taxman]

OUCH!