Quote Of The Day

“And yet, most of us realize that there are huge differences between price rationing and government rationing, and that the latter is usually much worse for everyone….The rationing is, first of all, simply worse on a practical level:  goods rationed by fiat rather than price have a tendency to disappear, decline in quality, etc.  Government tends to prefer queues to prices.  This makes most people worse off, since their time is worth much more than the price they would pay for the good.  Providers of fiat-rationed goods have little incentive to innovate, or even produce adequate supplies.  If other sectors are not controlled, the highest quality providers have a tendency to exit.” —Megan McArdle, on why price rationing is far superior to government rationing

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