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RE: Irma went West instead of East, Miami is spared, Tampa Bay is in the crosshairs

in #life7 years ago

Too different ways to look at this. At $200, everyone with a casual need for travel would purchase, and supply would be gone. At $1500, the tickets would be purchases by those in most need of travelling, and so the limited supply went to the people with highest need. Pricing is the mechanism that keeps supply and demand in balance, and ensures signals are sent to market when supply and demand get out of balance.

That is generally perceived as a good thing. When prices are allowed to go up, it can bring more supply to an under supplied market.

If you don't have these signals, then you get the empty grocery shelves that you often see in Russia, and Cuba, and Venezuela and other socialist paradises.

There is no one with central authority that can control prices and ensure supply is maintained, like the free market.

Counter balance is time of crisis sometimes price increases are pure profiteering.

Water is probably a better example where if the free market was allowed to set prices the supply after crisis would be handled within 24 hours.

Plane flights are not as easy to bring in huge extra supply. Water it is possible to bring in huge extra supply. Which the market will do if the price is allowed to send appropriate signals.

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You make a huge (bad) assumption... that anyone who needs to evacuate can afford a $1,500 air fare.

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