Friday, August 28, 2009

Price control idiocy

As you may be aware, in recent weeks the Massachusetts legislature has completely lost its mind and has passed frothing-at-the-mouth regulations regarding pandemic flu. Aside from violating several parts of the Bill of Rights, the flu legislation also includes this gem:

The attorney general, in consultation with the office of consumer affairs and business regulation, and upon the declaration by the governor that a supply emergency exists, shall take appropriate action to ensure that no person shall sell a product or service that is at a price that unreasonably exceeds the price charged before the emergency.

In other words, if there is a lack of supply of (say) Tylenol, the Massachusetts government should make sure that Tylenol stays really cheap. Yeah, that oughtta solve the problem.

How exactly do these people get elected? Is it like a high school popularity contest? Because apparently they don't actually have to know anything to get the job.

If you have a shortage of something, you ration it. How hard is that to understand?

What they're proposing is to insist that critical items be sold at a low price (relative to demand). Well, if something is priced low, don't more people buy it? Wouldn't the shortage grow worse? Wouldn't rationing be a far more effective way of insuring that key items are available to the public?

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