· How to get “fish to the people” (drawn on board as artwork)
o More people demand than the supply allows to be served
· Sample rationing criteria (possible way to ration goods)
o 1) Need
§ Too vague, arbitrary on anything bigger than a grand scale
§ Someone has to determine how much people need
· Also vague, arbitrary
§ Very costly and invasive
§ The people will want it the most probably won’t get it
§ Example: communism
§ 5 Fish, 12 people
· How does one person make it clear that they need the fish?
o 2) Queue
§ First come, first serve
§ Long lines for goods occur when the goods are very cheap or free
§ Much more inconvenient
§ Easy for black market to develop
§ Only certain people are willing to show their need for a good
o 3) Lottery
§ Considered fair
§ Easier to rig than the price system
§ People who value the goods the most may or may not get it
· Same with people who NEED them
o 4) Equal Shares
§ Pure communism
§ Everyone gets a little bit of everything, but sometimes it is the desired amount
o 5) Might makes right
§ Must fight for right
§
§ Can not plan for anything
o 6) Merit
§ Beauty? Smarts?
§ People who “deserve” them the most
§ Social judgment rather than an economic judgment
§ The term “merit” says nothing about the level of the achievement
§ If you do not produce anything but try hard to do so, a merit-based ration system would not care and award you anything
· Accidents have no value
· Large amounts of production would be equal to large amounts of effort
· Evaluation of Rationing Mechanisms
o 1) Where does competition come from?
§ Competition CAN NOT COME FROM RATIONING SYSTEM, but instead is due to capitalism
o 2) What is the nature of competition?
§ Destructive:
· Nothing good comes out of it!
·
· Muscles
o Roids in sports
· Money:
o People are going to either produce more or steal from those who are producing
· Need-based admission
o If you pretend to look poor, you can get more, even if you have money
o People competing to make yourself look poorer
§ Constructive:
o 3) What are incentives for producers to make/deliver more?
o Other Considerations:
No comments:
Post a Comment