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Adrian
Re: Ready for a Shortage of Hard Drives? - http://allthingsd.com/2011102...
"I don't think this is how economies work ? You only see shortages i.e. empty shelves if prices are being fixed by the government e.g. bread shortages in the soviet union or petrol shortages in the 70s. In a competitive free market prices rise and this reduces demand and signals to suppliers to increase production. Thus you see prices rise to a new higher equilibrium and consumers switching to alternatives or cutting back but not empty shelves. Even in hurricanes as long as the government doesn't act to stop 'price gouging' the shelves don't stay empty for long. The high prices mean the effected area can place high bids with national wholesalers for batteries and 2x4's etc. Thus things in high demand flood into the effected area and race to the stores where there is most demand i.e. the highest need signaled by the highest prices. This is very different to a government controlled system with low prices, empty shelves, starving people and full FEMA warehouses trying to guess where to..." - Adrian