Back in the 70s, the Department of Energy was tasked with allocating gas to the gas stations. A gas station had to apply for an allocation, and the DoE doled out the gas. The DoE doled out gas based on the previous year's usage patterns.
Sounds smart, right?
What happened is that gas consumption varies year to year due to a number of factors, like weather patterns, population changes, etc. The result was massive misallocation by the DoE - Californian had shortages of gas, Florida had gluts. That sort of situation has never happened before.
All that nonsense disappeared literally overnight when Reagan repealed all gas price and allocation controls with his very first Executive Order. I remember than wonderful day very well - at last I could drive right up to the pump and get gas, rather than wait in line. The gas lines never returned.
What you're suggesting is called "central economic planning". It is constantly tried again and again, and it never ever works. (The failures of it are always classified as "unintended side effects", though they are entirely predictable.)
Not in the UK, due to a fragile supply chain.
https://news.sky.com/story/supply-crisis-catastrophic-panic-...
We saw it when the Evergiven closed the Suez. We see it whenever irational consumer behaviour caused unpredicable behaviour.
The Randian world you are so enamoured with is one of fragility, because buffers and margins reduces profit.
Or are those "unintended side effects"?
https://en.wikipedia.org/wiki/1979_oil_crisis
I don't think the history here is as neat as you have laid out. To be clear: this is not a defense of central planning.
The gas shortages never existed before Nixon imposed price and allocation controls on gas, either.
(Except during WW2, where gas shortages were caused by gas rationing.)
Absolutely correct. But public regulation is quite resistant to course correction. Private companies have to face competitors and adapt or fail.
> The US healthcare system is just one fantastic example of the private sector absolutely failing to deliver even a bare minimum standard of service
The US healthcare system is massively regulated and interfered with by the law and things like people are forced to buy Obamacare and forced to contribute to Medicare and Medicare massively distorts market forces.
Healthcare in the US was affordable before the government got involved.
