Thu 27 Mar 2008
Rationing in the United States
Posted by RichSlick under The Fed
[4] Comments
If you recall from the 80′s and Soviet style government, you might remember all the stories about standing in line for hours to get a loaf of bread or pair of shoes in the U.S.S.R before the wall came tumbling down. The brilliant scheme of communism resulted in grand rationing of even the most basic goods and services.
Flash forward 20 years later and the rationing seems to have shifted to rationing in the United States. Although the rationing I speak of isn’t exactly the same thing, the net result is the same. As I travel around the world I am completely dumbstruck at how the TSA is unable to run as an effective and efficient organization. At virtually every airport, there are long lines to get screened through security. Long lines, government bureaucracy, inefficient all keywords reminiscent of those found in the soviet union?
It doesn’t stop at government run enterprises either. I can name a few things off the top of my head that are so out of whack that “rationing” is the most appropriate word for it and here’s a brief list: Healthcare, Energy, Food, Education.
While supply isn’t necessarily constraint in our environment it is “rationed” through cost and availability for most people. The root cause of “rationing” of course is artificial inflation but that’s a story for another post.
It is ironic that as the collapse of the soviet union ushered in a new era of world wide capitalism whose primary net result appears to be the creation of a “rationing” effect across the world for basic necessities.
4 Responses to “ Rationing in the United States ”
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October 4th, 2008 at 8:34 am[...] also wrote this post that led me to think that we will experience more and more rationing in the future and oddly enough [...]
March 27th, 2008 at 12:40 pm
Wait. You mean when costs go up demanded services goes down? That Econ 101 class with it’s supply/demand curves was actually some kind of communist rationing plot?
No. That’s not what I think you actually meant, but I’m having a hard time figuring out what you were getting at.
March 27th, 2008 at 1:40 pm
I agree with Mike, this post is not making a whole lot of sense.
I don’t see long security lines at airports as a form of rationing.
Government disorganization? Sure. Rationing? I’m not making the connection.
March 27th, 2008 at 2:28 pm
See Webster’s definition here:
“a share especially as determined by supply”
The supply of TSA agents (or at least competent ones) seems to be in short supply whether demand is up or not (not necessarily econ 101). If you haven’t experienced long lines at airports then clearly you don’t fly that often.
The problems with energy & healthcare aren’t necessarily related to demand/supply econ 101 but rather supply (rationing) constraints.
My point is that there aren’t enough people to do the work that is needed out there. I’ll follow up Monday with another post to provide a more clear example.