Who Should Get A Kidney?
Some say that it is unethical to pay someone for a kidney while others say it is unethical to use a method (a government list) that makes fewer donor organs available. As always, choosing is refusing....
View ArticleA Water Dilemma
Last week, the Boston area had undrinkable water for several days. Predictably, bottled water sales soared as did bottled water prices in certain stores. Equally predictably, politicians condemned the...
View ArticlePeanuts or Cotton?
Farmers decided to plant fewer peanuts when cotton prices soared. The result? Now peanut prices are skyrocketing. Here is the story. Perhaps it all began with higher cotton prices. Responding, peanut...
View ArticleVenezuela’s Price Controls
Reading that a Venezuelan retiree did not mind the food lines, I started thinking about how President Chavez’s price controls have changed incentives. The retiree, who has more time than money, now has...
View ArticleJust Desserts
Our story begins in 1920 with some ice cream, some chocolate and a stick. A candy maker decided to coat the ice cream with the chocolate, insert the stick and freeze it. Patenting the stick idea, he...
View ArticleDo You Like Rent Control?
Asked if it makes sense to mandate lower rents for some apartments in large cities, many of us say yes. Lower rents facilitate diversity and they enable middle income municipal workers to live close to...
View ArticlePrice Ceilings: Venezuelan Toilet Paper Shortages
One shopper had to search for toilet paper in 6 stores. Another arrived in a supermarket just after a delivery but was limited to a 4-roll maximum. Attempting to deal with its toilet paper shortage,...
View ArticleSubsidies: Fueling Egyptian Turmoil
The time is 8 am. During March 2012, 200 people at a depot just west of Cairo are waiting for a truck delivery of butane cylinders. One gentleman yells, “Please, I’ve been waiting for 10 days to get my...
View ArticleVenezuela Has Cheap Gas But No Cars
At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. The dark purple country at the northern tip of South...
View ArticleVenezuela’s Biggest Economic Problem
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.
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The Strange World of Venezuelan Hyperinflation
When the inflation rate soared in Zimbabwe, people started washing worn out dollar bills. Since the dollar had value while Zimbabwean money did not, they overused their limited supply of U.S. currency...
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The Upside of Price Gouging
During the Hurricane Katrina clean-up, a man from Kentucky loaded 19 generators onto his rented U-Haul. Read more >
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How Venezuela’s Price Ceilings Are Moving
While Venezuela's price ceilings created life threatening shortages and distorted incentives, lifting them will temporarily result in more distress. Read more >
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The Upside of Texas Price Gouging
Accused of price gouging after Harvey hit Texas, the businesses that raised prices might actually have been helping people. Read more >
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Does Rent Control Really Control Rent?
When cities like San Francisco pass rent control legislation to create affordable housing, they could wind up with unintended consequences. Read more >
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Why You Might Want Some “Price Gouging”
Called "price gouging" by many of us, an increase in prices as a hurricane approaches could be a productive incentive for supply and demand. Read more >
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Why We’ll Have a 2019 Valentine’s Day Candy Shortage
First there was the Great Necco Wafer Panic of 2018 and now we have a Valentine's Day candy shortage of the conversation hearts that are a national favorite. Read more >
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Subsidies: Fueling Egyptian Turmoil
The time is 8 am. During March 2012, 200 people at a depot just west of Cairo are waiting for a truck delivery of butane cylinders. Read more >
View ArticleClik here to view.
Venezuela Has Cheap Gas But No Cars
At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. Read more >
View ArticleClik here to view.
Venezuela’s Biggest Economic Problem
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding. Read more >
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