Well, you assume their goals are to build and maintain a healthy economy.

His voters are the only ones that could learn from it

Prices are what helps ration out goods and services, higher prices makes people buy less. This helps ration out the shortage while also incentivizing those same businesses to use their higher profit margins to make more for the people and sell at a cheaper price. They are likely to sell at a cheaper price only if there is fierce competition in the market, which comes from people being able to easily enter the market and/or the market already has a lot of businesses to compete in said market. Also as a side note, the higher profit margins shows to the market when there is a shortage. Thus more jobs will be created with existing business to meet demand with supply to compete at a lower price and new business makes more jobs since they should easily enter the market. Rationing is already a function with prices, but it has the best benefit to allocate money resource for business to produce more in effort to compete for more customers. Therfore, over time, poorer people will be able to better afford basic and important necessities.

@@doomersnek3878 Thank you for your response, i enjoyed the information and I fail to find much to disagree with on first glance. But my question was not gearded towards finding the best solution for rationing, rather, if we can guess what the consequences of such a rationing policy might be. Secondly, regarding the free market solution, imagine that a natural disaster happens and we end up with a limited supply of water for a certain period of time, should we allow some fat cat to buy up a significant amount of the remaining water that people need to survive so that he can water his lawn just because he can afford to do so?

@@MrCrabguy whats more likely to happen is the fat cats will sell water for a high price while keeping enough for themselves. it would still be better than the government regulating it as it would be rationed from being expensive. when there is a shortage high prices are a good thing it prevents any ordinary person from over consuming.

i almost went on a long rant

@@lilyscarlet2584😂😂😂