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Rationing

All products at all times are subject to one of two types of rationing.

The first is the rationing caused by market price.  This rationing ensures that the product never runs out.

The second is the rationing caused by dictate of The State.  This rationing ensures that the product will run out.

No product can ever be unavailable without The State’s interference in the voluntary market.  It may become unaffordable to some, but it will never be unavailable.  There aren’t many Van Gogh’s around, but you never hear about a Van Gogh shortage.

The State’s attempts to keep a product affordable for all ensures that it will become unavailable to all, except the very rich.  The very rich of course includes the politicians. The very rich will still be able to afford to buy it on the black-market that will be created as an unintended consequence of The State’s actions.

The black-market price is always higher than the voluntary market price because the price has factored in to it the risk of doing business.  If the black-markets are effectively shut down then the product will be entirely unavailable.

At the point that it starts to become unavailable The State will usually take over the means of production.  Their justification for this is ‘to ensure supply’.

Once the voluntary market is removed from production then
a/ the quality of the product will deteriorate alarmingly,
b/ the product will fail to match consumer expectations    (wrong size or colour etc),
c/ you will have to queue for the product if it is available at all and
d/ the price will be considerably higher than the ‘high’ voluntary market price which caused The State to intervene in the first place.

A voluntary market operated by free people is like an angelically beautiful young child who just constantly does his or her best.  Market regulation is economic paedophilia.

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