AEIdeas

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Discussion: (22 comments)

  1. Max Planck

    “Just wondering, if some of these generators are now being sold below retail – will the sellers be charged with “dumping”?”

    You think that remark is funny?

    1. Jon Murphy

      It is to people who understand economics.

      1. Then you must understand that people will ignore you and your recommendations.

      2. morganovich

        agreed.

        i think it’s funny.

        i also think it highlights a key aspect of the price mechanism. setting up to try and take advantage of high prices has risk. they don’t always stay high. sometime you wind up with a ton of inventory into a glutted market and wind up losing your shirt.

        taking such risks requires prospective reward (like higher prices).

      3. Max Planck

        Like you, huh? LOL!!!

        1. Jon Murphy

          Yep, exactly like me.

    2. Actually it makes sense if you give the supply chain a few days it can react (at least as long as it takes to get trucks to the stores and the stores open. Same thing happened after Eike and Katrina, for a while after Katrina generators were is short supply nationwide, but after about a month the supply normalized.

      1. Jon Murphy

        Yep, the glory of the free market: a supply shock happens, prices rise. Higher prices attract more supply to the area it is needed. Supply increases, and prices fall.

        That’s what I call effective crisis management.

    3. Don’t you think that remark is funny maxie boy?

      After all these idiots running those nanny state governments also have something called, ‘anti-gouging‘ laws too…

      Apparently basic economics is a bit to complex for the average liberal/statist tax leech to understand…

  2. If generators become too cheap, people will buy them and use less electricity off the grid – so yea, I imagine the electric companies will lobby Governors Christie and Cuomo to force anyone with excess generators to keep prices high – but too high (as to what “high” is will depend on complaints – if anyone complaints the prices are too high, the Government will sue them – so those with generators better know how the wind is blowing or else be prepared to be sued for high OR low prices)

    Those who do buy generators will then demand that they get special prices on gas for “generators”.

    And so on and so on … the madness will thrive.

  3. Benjamin Cole

    Wonder if London ever went to a basement “bomb shelter” phase.

    In the USA GOP’er Rockefeller was an avid proponent of fallout bomb shelters underneath single-family detached homes and proposed one for every home, like a chicken in every pot.

    1. Of course they did but a bit before the 1950s recall that London got bombed in WWII If you read about Churchills HQ it was underground, and I suspect there were a number of other government facilities such as phone exchanges underground. Of course parts of the tube are also far underground such as the Piccadilly line in central London.

      1. morganovich

        though i suspect that during the blitz, it was pretty difficult to get a contractor.

  4. Jon Murphy

    Given that there is now a surplus of generators and still a shortage of fuel, I think we can reach this conclusion:

    Free markets solve problems
    Governments prolong them

    1. Absolutely!

  5. SeattleSam

    It’s such a shame that chaotic markets are allowed to interfere with the orderly price that government determines is right for something.

  6. 3-D printers. Scott Adams beat you to the punch.

    http://dilbert.com/2012-11-05/

  7. re: underground bunkers…

    Hilarious!

    “We analysed the planning laws and realised that they cover everything about the surface of the ground, but nothing beneath it. There was nothing whatsoever that could stop us from drilling all the way down to the south pole.”

    Oh those silly statists, didn’t think about controlling that part of the country…

    Ha! Ha! Ha! Ha!

    Can a mole tax be far behind?

  8. So it appears that the initial “shortage” of gas generators and high prices may have attracted so many generators to north New Jersey that there is now a generator glut and prices are dropping.

    Occam’s razor. Electric power was restored.

    1. Jon Murphy

      I think the 150,000 people (including the entire island of Long Island) without power would disagree with that statement.

      1. Hey jon, maybe they need more unions

      2. Jon Murphy

        Well, I mean you are right, Marmico, that the power restoration to many citizens surely has helped the problem, and lowered demand for generators, but there is still a significant segment of the population without power.

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