The Great Simplification with Nate Hagens cover image

Unlearning Economics: Jon Erickson, Josh Farley, Steve Keen, & Kate Raworth | Reality Roundtable #03

The Great Simplification with Nate Hagens

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Rationing and Collusion: The Impact on Essential Resources like Food and Energy

"Essential resources have to be rationed during wars," said the speaker. They provided an example of Enron colluding with other producers to cause a tenfold increase in energy prices in California. On the other hand, Brazil efficiently dealt with their energy shortage by charging the same price but reducing consumption by 10%. Relying on markets can leave the poor suffering, while rationing ensures people get what they need. However, rationing is a taboo subject in economics."

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