When Price Is Freely Set, There Are No Shortages

If you ask any student who took a course in introductory microeconomics about a “shortage,” well, one who was paying attention, you’ll get the same answer: this means that demand is greater than supply. And if the student had any love for this subject, you would not be able to shut him up at this point. Rather, he would wax eloquent about what would happen next: prices would tend to rise, as many buyers fought against each other in a bidding war to get “their share” of the good or service now in short supply. And, as the price rose, there would be less and less of a shortage

These lessons seem to be beyond the scope of the U.S. government and major media, members of which, presumably, never took economics 101. Or, if they did, slept through it, or were then and now still are, politically correct “woke” social justice warriors who reject the teachings of the dismal science as a matter of principle.

 

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