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Murray argues that the free market can handle all problems of shortages without a government campaign for “sacrifice,” and what he said about energy conservation in the 1970s applies to government calls today to curb our use of fossil fuels: “Is there an ‘energy shortage,’ and are Carter’s draconian measures necessary to alleviate it? Here, we must point to a vital distinction that lies at the heart of economic science: between ‘scarcity’ and a ‘shortage.’ Not only are all forms of energy scarce, but all goods and services, without exception, are scarce as well. That is, people could always use more of them if available. We have always lived in a world of scarcity for all goods, and we always will, short of the Garden of Eden; economic development over the centuries has consisted in making goods relatively less scarce than heretofore. The test of whether or not any good or service is scarce is very simple: is its price greater than zero? If it is, then it is scarce. Happily, air is not scarce, and so its price on the market is zero (although this is not true of conditioned air.) Everything else is scarce. How, then, are these universally scarce supplies to be allocated, to be ‘rationed’? In the free market, such ‘rationing’ is done, smoothly and harmoniously, by the free price system. The price of any good on the market equates its available supply with the demand for it — with the amount that consumers are willing to purchase at the market price. The free market smoothly adjusts to differences in relative scarcity. Suppose, for example, that a frost kills much of the orange crop, and the supply of oranges on the market is reduced. The free market price then rises to equate supply and demand. There is no need for anyone, least of all government, to order everyone to ‘conserve’ their purchases of oranges because supply has been reduced.”
This outlook is closer to what I remember of the Jimmy Carter years than the pictures painted by current lefty/Marxist/socialist/communist/murderers in the MSM. Yes, we all suffered the pain of what he imposed through his draconian policies concerning energy. There was no shortage there was scarcity of petrol.
10 sats \ 5 replies \ @siggy47 12h
I was around during Carter's presidency. He was loathed by the entire country, including by his own party. When Teddy Kennedy entered the race that was a huge humiliation.
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I think this is one reason that Regan won his race so handily. I remember the lines at the gas stations the most. Our pain was certainly being shared by all of the people, but not the ELites. Rothbard clearly identifies the source of the pain: inflation. He does not say much about the stagflation that was going on, though. Job hunting at the time was hugely difficult, too.
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20 sats \ 3 replies \ @siggy47 11h
Yes it was. I remember looking for a job early in Reagan's first term, and it wasn't easy.
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I did the same. It was a very difficult time for everybody. I finally took a job in sales on commission. They were willing to give them out easily enough. The problem was making the sales to have a commission! Those were mighty lean years.
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15 sats \ 1 reply \ @siggy47 6h
Me too! In fact I think I mentioned it once a while ago on SN. I was doing telephone sales of Arizona Highways magazine.
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Yes, those were very lean times. I was happy to be doing face-to-face sales in insurance. They had really good sales training, though. I only used the phone, then, for making face-to-face appointments. After 2008, i took a job in sales that was telephone only. Lived through that one, too.
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