Asa Janney: >It appears to me that price rationing is not allowed, unless the situation becomes permanent. Why is this? <
It is a matter of a moment for a city council, or governor, to declare that rationing is over. Changing the price is likely to take much longer -- or never happen. >nonprice rationing must be popular among noneconomists. Is it so because everyone feels better perceiving that her neighbor has to bear some pain of the shortage, too? Does the political popularity arise from the feeling of shared burden? With price rationing, those with lower incomes who perceive that they have to cut down on their consumption more, grumble that the rich still get to water their lawns. No matter that the rich are paying the higher price, too - that is not perceived as so much of a sacrifice as doing without.< Yes, the rich are paying the higher price, and no doubt using more water, for their golf-green lawns etc. But I suspect they notice the additional expense list, don't you? Michael Michael E. Etchison Texas Wholesale Power Report MLE Consulting www.mleconsulting.com 1423 Jackson Road Kerrville, TX 78028 (830) 895-4005
