alt Hacker NewsGasoline is absolutely rationed when it becomes scarce after having been plentiful.
When hurricanes come to South Florida, the well off migrate North to wait out the storm while the poor suffer the dangerous conditions. Part of this is due to the price spikes of gasoline in the local market as supplies dwindle due to fewer truck shipments and refineries shutting down for the storm.
Water is similar. Both water rights and water utilities are gamed by people who have resources. The people that are hurt are usually poor utilities bill payers, rural residents who are the first to lose service when wells dry up, and anyone who thinks they have water rights until an upstream user exhausts their expected supply.
The “markets work” heuristic is frequently wrong if you don’t glaze over the very many counterexamples.
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Yeah but that response is stupid, irrational, makes shortages more likely and discourages people from taking action when they need to do something different right now. In an emergency situation, people who can provide more of something that is in desperately short supply should be paid more. People consistently adopt a strategy of trying to not pay them more and it's one of those really annoying cases where people's instincts are primed to make them band together and do something predictably foolish.
Rationing is an inevitable response. But to say that is like saying witch hunts are inevitable - they are. They're still bad ideas. People who can maintain access to their higher reasoning should resist them.
200 miles will easily get you out of the path of a hurricane. 200 back home. 400 miles at 20mpg is 20 gallons of gas. Even if gas doubles from $4 to $8, that’s only an extra $80, likely less than the cost of that one night of motel, and certainly less than the economic costs of actually being hit by a hurricane.
As with many things, markets do work, but people don’t make rational choices for their well-being.
> Gasoline is absolutely rationed when it becomes scarce after having been plentiful.
Sure, but OP is advocating that we should "systematically [use] a pricing structure that charges disproportionately more for usage above high thresholds." They're not arguing that this is something to be applied only in emergencies.
Similarly in your post, you use the need to ration gas after a hurricane to argue that we should ration water all the time. This does not follow.
> Both water rights and water utilities are gamed by people who have resources. The people that are hurt are usually poor utilities bill payers, rural residents who are the first to lose service when wells dry up, and anyone who thinks they have water rights until an upstream user exhausts their expected supply.
The logical extension of your argument here is that the world would be better if we subsidized gasoline for "poor utilities bill payers" and "rural residents".
But why gasoline and water specifically? Why not also healthcare, food, childcare, and other necessities?
Then consider, if we have a budget of $X per family to subsidize necessities, surely the government is not best suited to decide how to split up those dollars between water, gas, healthcare, food, and childcare? There's no right answer universally, some people need food more than they need gas, and vice versa. Surely an individual family would be better equipped to decide for themselves?
We have now invented "giving money to poor people instead of subsidizing demand", which I wholeheartedly support.