August 29, 2008
Rationing function of prices

As we here in Louisiana brace for the possible landfall of Hurricane Gustav, with Hurricane Katrina a recent memory, preparations are being made for evacuations and shelters.

On top of all this, a local church has decided to "offer some relief to citizens in the community from high gas prices due to recent shifts in our economy." "Bishop Larry L. Brandon and Praise Temple Full Gospel Baptist Cathedral will be giving away $10,000 in free gas to the community at four Murphy USA gas stations near local Wal-Mart stores in the Shreveport-Bossier City area starting at 4 p.m. today."

It appears that members from the church will spend a half hour at each station, giving away $25 of gas to each person.

It should be an interesting experiment to see how efficiently gasoline is rationed when it is both free and likely to be in short supply should the Hurricane hit our state.

Posted by Tim Shaughnessy at 12:24 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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