Tuesday, March 20, 2012

She Just Smiled

Remember the Christchurch earthquake a little while back? Well, iconic Kiwi foodstuff Marmite is facing a production crunch that is leaving even the prime minister scrounging for jars.

Let me assure you as a purebred Yankee that Marmite is indeed superior to Vegemite in almost every possible respect. At any rate, remember this?

After several years of fairly decent free market reforms, let's hope we don't (or do, depending on your preferences) see a repeat performance from someone equally talented, but living in Auckland. Let's also hope that in the event prices rise, it's because prices contain information. In this case, the information is that there won't be any Marmite until the factory is back on its feet. Asserting central control over prices in response to a supply shock disrupts the signals that allow unexpectedly scarce goods to be allocated to their highest value use.

Do me proud, NZ.

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Do you have suggestions on where we could find more examples of this phenomenon?