… I deny that behavioral economics strengthens the case for government regulation. Indeed, I believe that it weakens that case. Because the regulators have the same psychological foibles as the regulatees – yet face far less direct feedback on their decisions than do those whom they regulate – turning more decision-making power over to government increases the frequency of human error and amplifies its ill-effects. Markets keep those errors less numerous and their effects more confined.
Human beings are not laboratory rats to be controlled and conditioned by some elite of their number who, somehow and without explanation, manage to become higher-order creatures simply by working for government and professing deep concern for the welfare of their lab animals.
Venezuelans are used to going without staples like milk, coffee and butter, thanks to the country’s frequent food shortages. But now they’re dealing with a much more urgent crisis: a lack of toilet paper.Stores have run out, and each new delivery sees a rush on supermarkets. The demand is so great the government has now been forced to order 50 million rolls to appease desperate shoppers. One woman standing in line at a Caracas supermarket that received a fresh delivery told the Associated Press that she had been scouring the capital city’s shops for two weeks. “Even at my age, I’ve never seen this,” another, 70-year-old shopper told Sky News.Economists blame Venezuela’s shortages partly on price controls, initiated by the late President Hugo Chavez, to make goods affordable to the poorest people in society (in a government store, a kilogram of pasta costs $0.30, writes the BBC). But that has also led to country-wide shortages of staple items, and Venezuela’s “scarcity index” is currently at 21% – meaning that out of 100 basic products, 21 aren’t available in stores, notes the BBC. “State-controlled prices—prices that are set below market-clearing price—always result in shortages,” said Steve Hanke, professor of economics at Johns Hopkins University, told the Associated Press. “The shortage problem will only get worse, as it did over the years in the Soviet Union.”
Say what you like, but as much as our Left politicians hate free markets - and thus an individual's freedom from the arrogant theocracy of themselves - in the market economy, with the feedback loop of market signals, you’ll always have toilet paper. The Left need to take off their ideological blinkers that keep them in this ignorance of emoting about issues rather than thinking on them.