Saturday, November 3, 2012
USSR in NJ
From an e-mail I sent to my in-laws:
The situation on the East Coast, where the governor of NJ made profiteering forbidden, is the best example why I am a libertarian. NOT (only) because I care about the gas companies and their natural rights. But because profiteering is the best way to attract business — to attract import of gas, generators, construction crews, shovels, whatever is needed, into the disaster zone. Why the heck would I import gas to NJ from, say, Ohio, if there is no additional incentive for me to do that?
Plus, it keeps the supplies of gas, etc., well rationed. People buy only what they really need when the prices are really high (driven up by high demand and low supply). That way, the first ten people coming into the store won't buy up all the water bottles, leaving the rest with nothing.
Meanwhile, a few black-market gas stations have sprung up. Just like in the Soviet Union, where they sold sausages and electronics on the black market at the market price (plus a little extra for the risk), while in the stores the shelves were empty from over-consumption and under-production. As the crazy mathematician from Jurassic Park said, "nature finds the way".
Yes, I know, all that greedy business owners care about is profit. But profit allows the goods to go where they are supposed to and serves as an indicator that the producer is doing the right thing.
Here is a good image from the Facebook:
at 10:37 PM