If there is a disaster, would you like people for hundreds of miles around to drop everything and make herculean efforts to get those worst affected exactly the sort of help they need most – even when the helpers have no personal connection with the victims? Would you like factories worldwide to rush to switch production to making whatever they are short of in the disaster zone?
You would? Then let people make money by doing it. You can either rely on the small subset of people who will seriously disrupt their lives to help strangers out of pure charity, or you can also get help from the much larger pool of people who who are pushed from vague thoughts of benevolence into action by the prospect of profit. Let them sell goods of which there is a shortage at a higher price and soon there won’t be a shortage any more.
– something sorta like this was said by someone, whom I would gladly credit if I could remember who they were.
My post was prompted by this story by Edward Thicknesse in City A.M.: Coronavirus: Calls for price controls dismissed as ‘economically illiterate’.
