Chapter 6 Reflection

The Venezuelan food shortages were partly the blame for the price controls and it is how the price floors affect the market outcomes. This is when rationing takes effect. In this aspect the sellers appeal to the personal biases of the buyers, maybe due to racial or familial ties, and then they are able to sell their products than those that cannot. Prices are what balances the supply and demand and will either help of hinder the economy. Sometimes the government can improve on the market outcomes and sometimes the price controls can hurt those that the government is trying to help. A good example here is affordable housing and the rent control. Another example is, when feed is too expensive for the farmer, then the cost is passed on to the consumer and the prices go up on their products.

Several years ago, the cost of hay went way up and was extremely hard to find. So if you had livestock, you were being gouged by paying an astronomical amount for hay if you could find it. But what do you do, your animals have to eat. During this time, we were seeing animals were being let go or were being found starving. This was so unfortunate.

You asked to consider a different case: After Hurricane Katrina, my brother was a truck driver during this time. It was a very scary time, yes controls had to be put in place or our society would have gone crazy. He was delivering generators and had to have police escorts to certain locations due to the demeanor of the people that he was dealing with. But by no means should have the price of the generators been made so high or a tank of gas, a bottle of water, a box of diapers been raised up so much that the people that were affected could not afford these items. But this is what happened even though controls were in place. People were hurting people over simple items. The concept of fairness was thrown right out the window during this time.

As for minimum wage, I truly believe that everyone that works hard deserves to make more money, but not at the expense of other employees. I have been watching the news and so many people are all for the increase in the minimum wage. I was a single parent with five kids so I know how tough it can be to make ends meet. But at the other end, companies will have to lay-off employees and get by with less employees or close their doors if there is an increase. So the problem is on both ends.