Here’s the arrangement the Pilgrims used when they first landed:
“Although they planted household gardens almost from the start, they collectivized initial field and livestock operations. The settlers had some agricultural successes, but they were unable to grow corn in their common field. Within six months of reaching Plymouth, almost one-half of the population had perished from disease.
That’s a quote from Professor Robert Ellickson in Prof. Don Boudreaux’s article The Pilgrims’ economic progress.
A collectivized farming system didn’t work too well. Starvation was the result.
So, they changed their plans: Continue reading “Under what economic model did the pilgrims almost starve? What different economic model allowed them to thrive?”
New Jersey has apparently made supply and demand illegal. The power of the state will hammer anyone who charges more than the state feels is reasonable by their standards. See Price gouging complaints in New Jersey as merely one report on the topic.
Making it illegal to sell stuff at the market price guarantees the shortages will get worse. Why?
People will panic-buy things they don’t need, retailers may not be able to get replacement stock, and some retailers may have to close their doors when they run out of stuff.
As a natural and logical result, other people who really need something will find only bare shelves.
But it sure feels good to rant against ‘price gouging’. Makes for great sound bites on TV.
On the other hand, if you let prices rise, the price signal will allocate the scarce goods to people who really need them. Why?
Continue reading “How to guarantee shortages – make the price signal illegal”