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The big taboo, rationing ..why not?

Discussions about the economic and financial ramifications of PEAK OIL

fuel/carbon rationing?

Poll ended at Mon 14 May 2007, 12:29:54

yes
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no
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Total votes : 44

Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Sun 06 May 2007, 06:49:02

$this->bbcode_second_pass_quote('gg3', 'R')ationing is a viable solution for short-term emergencies but won't work as a long-term powerdown measure.


why?.. I sort of get the idea about why people say this..but no one really explains why?

$this->bbcode_second_pass_quote('', '
')For the long term: Relentlessly increase the efficiency standards on vehicles and on building HVAC systems and on appliances. Do it under the claim of energy independence.

Start by deregulating the importation of high-efficiency vehicles: any car that gets more than, for example, 70 miles per gallon. This would produce a microcar boom overnight and leave the US Big Three begging for relief. Then tell the Big Three: yes we'll bail you out but only on the condition that the bailout is used to retool for competing with those high-efficiency imported vehicles.

Note: At present you can buy electric cars, hybrids, and high-efficiency internal combustion vehicles overseas but these are illegal in the US due to "safety issues" such as how they would do in a collision with an SUV. As soon as we see a flood of these things on the market, the liability premiums on microcar-squishing SUVs will soar, helping re-internalize the costs of those behemoths via purely market forces.

At the same time as we deregulate the importation of high-efficiency cars, we also start jacking up the gas tax and using it to subsidize a) bus and rail systems, b) construction of solar, wind, and nuclear, c) paying off the Iraq war debt. (I'm no great fan of taxes, being on a first-name basis with a couple of guys at IRS and at least one at the CA State Franchise Tax Board. However, there are occasions, and this is one of them.)


sounds good but..

$this->bbcode_second_pass_quote('', '
')As for Jevons, remember that any increase in efficiency is an economic benefit to the person or business who/that does it. So even if the costs of fuel come down in response to conservation, those who are operating efficiently are at an advantage over those who are not.


I sure they will be at an advantage but does it restrict consumption..

the efficient user recycles the cash into the economy somehow.. what trail does it follow?

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Re: The big taboo, rationing ..why not?

Unread postby vision-master » Sun 06 May 2007, 09:32:41

$this->bbcode_second_pass_quote('', 'F')or the long term: Relentlessly increase the efficiency standards on vehicles and on building HVAC systems and on appliances. Do it under the claim of energy independence.


I was in building/ plant operations for over 30 years. In the ol days, buildings had windows you could open & were designed to do without A/C & could fuction without fan powered ventilation.

Now, all commerical buildings are death traps without HVAC systems runing when occupied. Most need AC when the OAT is as high as 50 degrees F and have no means of natural ventilation. Windows can't be opened anymore. The HVAC systems run on complex computer systems that in my opinion do nothing more than add expense & complexity.
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Re: The big taboo, rationing ..why not?

Unread postby Jack » Sun 06 May 2007, 10:33:05

$this->bbcode_second_pass_quote('mididoctors', 'w')hy?.. I sort of get the idea about why people say this..but no one really explains why?


Because people evade constricting rules.

They do it with dope. They do it with other contraband. They will do it with whatever you ration.

It takes time to create illicit networks, to work out smuggling routes, to find out who must be bribed. It takes time to find out where the weaknesses in the enforcement system are.

Once the solutions are found, the system will be evaded.

It doesn't matter if you decide to publicly execute everyone involved in the evasion - it just makes the price go up. Calling upon community spirit won't help either - people don't and won't care.
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Re: The big taboo, rationing ..why not?

Unread postby Twilight » Sun 06 May 2007, 12:51:05

$this->bbcode_second_pass_quote('mididoctors', '')$this->bbcode_second_pass_quote('gg3', 'R')ationing is a viable solution for short-term emergencies but won't work as a long-term powerdown measure.

why?.. I sort of get the idea about why people say this..but no one really explains why?

Rationing requires widespread social consent to be effective. People only give this willingly when they have some assurance that this requirement is both extraordinary and temporarily imposed. Call it, giving the authorities the benefit of the doubt. It doesn't last forever. There can be no expectation of indefinite compliance, whatever coercion and restrictions are applied.

The problem with any long emergency is it tends to become the new normality. And when prevailing conditions are no longer transient, but considered normal, then people do what they always do... adapt. All adaptation, ultimately is about exploiting the system to one's own advantage to the greatest possible extent.

This you can see today, in every illicit market.

Where governments are more vulnerable than markets is their tendency to establish predictable rules, while market-imposed responses are chaotic. This actually makes things easier for the black marketeer, as it can guarantee steady predictable supply, price, effectively contract conditions. The presence of an arbiter eliminates certain risks.

That's why a permanent crisis will see attempts at rationing fail, and why giving the criminally inclined an orderly framework in which to operate is a losing proposition.
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Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Sun 06 May 2007, 13:13:41

$this->bbcode_second_pass_quote('Jack', '')$this->bbcode_second_pass_quote('mididoctors', 'w')hy?.. I sort of get the idea about why people say this..but no one really explains why?


Because people evade constricting rules.

They do it with dope. They do it with other contraband. They will do it with whatever you ration.

It takes time to create illicit networks, to work out smuggling routes, to find out who must be bribed. It takes time to find out where the weaknesses in the enforcement system are.

Once the solutions are found, the system will be evaded.

It doesn't matter if you decide to publicly execute everyone involved in the evasion - it just makes the price go up. Calling upon community spirit won't help either - people don't and won't care.


there must be limits on the degree people can circumnavigate such restrictions.. otherwise nobody would pay any tax or duty on cigarettes etc etc..

are all systems evadable? why are there varying degrees of corruption depending on location/nation... cultural differences..for instance?

what factors influence the degree to which evasion takes place.. possibly penalty for defection?

I see the argument here but not completely sold on the inevitability

because different groups behave differently in regards to constriction this evasion dynamic may not be fixed in stone? otherwise you would expect uniformity or total anarchy.. which is a point i itself.. how come society hangs together at all if we are all cheaters at heart.. or all cheaters sometimes?

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Re: The big taboo, rationing ..why not?

Unread postby Twilight » Sun 06 May 2007, 13:24:17

All systems can be evaded, but at a cost. At the minimum, there is a considerable time and social investment involved, and often not trivial intellectual effort.

In times of relative prosperity, there is nothing to be gained from such activity. During an economic boom, few people go through the trouble of dodging cigarette duties for example, because it offers insufficient return on effort expended.

But when you and everyone else is unemployed, that changes the analysis. Activities once unattractive from a trouble/reward point of view, compare favourably with diminishing alternatives.

We are all cheaters some of the time, but society hangs together because most of the time we do not need to resort to cheating to look after our needs and desires. This has not been the case everywhere in the world. Look elsewhere to see how society hangs together where cheating is necessary to survival.
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Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Sun 06 May 2007, 13:26:13

$this->bbcode_second_pass_quote('Twilight', '
')Rationing requires widespread social consent to be effective. People only give this willingly when they have some assurance that this requirement is both extraordinary and temporarily imposed. Call it, giving the authorities the benefit of the doubt. It doesn't last forever. There can be no expectation of indefinite compliance, whatever coercion and restrictions are applied.


I recognize the nature of long term impacts but again experience does not always bear this out.. rationing continued up until 1953 for many items in the UK (lot of people don't know that)

and here lies a thing..if rationing is part of some overall "plan" to restructure the energy economy surely some restrictions will lift overtime as infrastructure is replaced by renewable economics (super cheap/free mass transit whatever)


$this->bbcode_second_pass_quote('', '
')The problem with any long emergency is it tends to become the new normality. And when prevailing conditions are no longer transient, but considered normal, then people do what they always do... adapt. All adaptation, ultimately is about exploiting the system to one's own advantage to the greatest possible extent.


Yes..I think this normality issue plagued the east bloc command economies

$this->bbcode_second_pass_quote('', '
')This you can see today, in every illicit market.


well drug use (for instance) is not really a rationed regime..can you be more specific in analogy here?


$this->bbcode_second_pass_quote('', '
')Where governments are more vulnerable than markets is their tendency to establish predictable rules, while market-imposed responses are chaotic. This actually makes things easier for the black marketeer, as it can guarantee steady predictable supply, price, effectively contract conditions. The presence of an arbiter eliminates certain risks.

That's why a permanent crisis will see attempts at rationing fail, and why giving the criminally inclined an orderly framework in which to operate is a losing proposition.


again yes point taken..see east bloc history.. but the intresting point here is the use of an external currency.. you needed to operate in dollars to a degree

the other point is "how long"

how long does a power-down=rationing FUNCTIONALLY


hopefully some restructuring will equate to some quality of life stability that is not experienced as a rationed regime?

I concede the length of the "rationed emergency" is a shock to the system... but

Do you get my point?

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Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Sun 06 May 2007, 13:31:30

$this->bbcode_second_pass_quote('Twilight', 'A')ll systems can be evaded, but at a cost. At the minimum, there is a considerable time and social investment involved, and often not trivial intellectual effort.

In times of relative prosperity, there is nothing to be gained from such activity. During an economic boom, few people go through the trouble of dodging cigarette duties for example, because it offers insufficient return on effort expended.

But when you and everyone else is unemployed, that changes the analysis. Activities once unattractive from a trouble/reward point of view, compare favourably with diminishing alternatives.

We are all cheaters some of the time, but society hangs together because most of the time we do not need to resort to cheating to look after our needs and desires. This has not been the case everywhere in the world. Look elsewhere to see how society hangs together where cheating is necessary to survival.


I think thats largely correct but you have to explain why rationing worked..

the simple answer is the items do not exist..

In situations without rationing but resource scarcity massive inequality occurs because cheating is institutionalized as legitimate.. (whoaa.. bit hardcore there i know)

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Re: The big taboo, rationing ..why not?

Unread postby Twilight » Sun 06 May 2007, 13:51:30

I get your point, but you understand that there would be enormous pressure for governments to get it right first time and deliver the necessary changes on an acceptable timescale.

And people need to understand the need. Why did rationing work? I think bombs falling on your head tend to focus the mind. It worked then, because the necessity was undeniable. It was in your face. It was killing people you knew. Looking around me today, I wonder what would need to transpire to snap people out of their comfort and complacency, and start thinking about sacrifice and the wider national interest. I don't think a conventional economic crisis will do the trick. Nothing less than an existential threat with full physical manifestation may be required. At least, we know that's what worked in the past.

Rationing continued in the UK into the 1950s, yes, but then so did the black markets. Faced with a long emergency, people adapted to the system, and those with the means were able to secure access to more of what they needed. But it is a sad comment on the pre-war state of affairs that egalitarian distribution of the basics, even subject to black market distortion, raised the physical well-being of the poorest during this time.

I wonder what will happen next time. The UK is certainly not the same society it was then. Extended rationing by the state may produce very different results.
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Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Sun 06 May 2007, 14:38:10

$this->bbcode_second_pass_quote('Twilight', 'I') get your point, but you understand that there would be enormous pressure for governments to get it right first time and deliver the necessary changes on an acceptable timescale.


yes ..doesn't really seem that likely given the current or even imminent lot


$this->bbcode_second_pass_quote('', '
')And people need to understand the need.


I don't think this part is as difficult as many would have us believe

$this->bbcode_second_pass_quote('', '
') Why did rationing work? I think bombs falling on your head tend to focus the mind.


you might be right about that

$this->bbcode_second_pass_quote('', '
') But it is a sad comment on the pre-war state of affairs that egalitarian distribution of the basics, even subject to black market distortion, raised the physical well-being of the poorest during this time.


now there is an interesting point


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Re: The big taboo, rationing ..why not?

Unread postby Tyler_JC » Sun 06 May 2007, 14:55:47

$this->bbcode_second_pass_quote('Twilight', '
')Rationing continued in the UK into the 1950s, yes, but then so did the black markets. Faced with a long emergency, people adapted to the system, and those with the means were able to secure access to more of what they needed. But it is a sad comment on the pre-war state of affairs that egalitarian distribution of the basics, even subject to black market distortion, raised the physical well-being of the poorest during this time.

I wonder what will happen next time. The UK is certainly not the same society it was then. Extended rationing by the state may produce very different results.


And the people with means deserve more of what they need.

If you get rid of rationing, the people with more money will still be able to outbid the poor for resources.

That's just how a market economy works.

A market, even an underground black market, still rewards efficient use of resources and punishes inefficiency.

A black market will increase the cost of doing business and further restrict resources to the wealthy.

Give each person 1 gallon of gasoline per day worth of coupons. If you don't use yours, sell it to someone who wants it more than you.

That would keep consumption at roughly the same level but it would encourage people to conserve because there is a financial incentive to conservation (profit from sale of coupons, rather than simply "saving money" by not consuming).
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Re: The big taboo, rationing ..why not?

Unread postby gg3 » Mon 07 May 2007, 01:50:46

The criminality problem is this:

First of all, in the 1940s and 50s, there was not a universal communications infrastructure as there is today: the velocity of information through society was far slower. Thus the development of criminal enterprises was also slower.

Second, there is a difference between low-level informal circumvention, and organized crime. Organized crime thrives on bottlenecks: thus it is more interested in heroin and cocaine (must be imported via smuggling) than in marijuana (anyone can grow it).

Informal circumvention can and will occur immediately at the beginning of any rationing system: for example Bob's friend Bert runs the local gas station and will sneak him a few extra gallons under the table in exchange for some of Bob's homebrewed beer.

Organized crime takes time to develop, and requires predictable legal and market conditions. Thus the longer the period of rationing, the longer the timeframe for organized crime to plan and operate and gather influence. Would you invest in counterfeiting of ration coupons if you knew that rationing would only go on for one year?

In contrast, continual escalation of vehicle efficiency standards, and commensurate escalation of fuel taxes, are much more difficult measures for organized crime to penetrate. Liquid fuels are more difficult to procure and distribute and sell on a tax-cheating basis than are cigarettes or other high-tax commodities. Tax evasion is a purely financial crime that, unlike counterfeiting of ration books, does not produce the immediate impression that your neighbor is getting more than his/her fair share of a scarce physical resource by cheating.
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Re: The big taboo, rationing ..why not?

Unread postby mididoctors » Mon 07 May 2007, 04:40:59

$this->bbcode_second_pass_quote('gg3', 'T')he criminality problem is this:

First of all, in the 1940s and 50s, there was not a universal communications infrastructure as there is today: the velocity of information through society was far slower. Thus the development of criminal enterprises was also slower.

Second, there is a difference between low-level informal circumvention, and organized crime. Organized crime thrives on bottlenecks: thus it is more interested in heroin and cocaine (must be imported via smuggling) than in marijuana (anyone can grow it).

Informal circumvention can and will occur immediately at the beginning of any rationing system: for example Bob's friend Bert runs the local gas station and will sneak him a few extra gallons under the table in exchange for some of Bob's homebrewed beer.

Organized crime takes time to develop, and requires predictable legal and market conditions. Thus the longer the period of rationing, the longer the timeframe for organized crime to plan and operate and gather influence. Would you invest in counterfeiting of ration coupons if you knew that rationing would only go on for one year?


I don't think any system will be perfect.. the current one isn't... it only has to be socially acceptable enough to be stable AND bring about a power-down via lowering the mean consumption


$this->bbcode_second_pass_quote('', '
')In contrast, continual escalation of vehicle efficiency standards, and commensurate escalation of fuel taxes, are much more difficult measures for organized crime to penetrate. Liquid fuels are more difficult to procure and distribute and sell on a tax-cheating basis than are cigarettes or other high-tax commodities. Tax evasion is a purely financial crime that, unlike counterfeiting of ration books, does not produce the immediate impression that your neighbor is getting more than his/her fair share of a scarce physical resource by cheating.


this is quite a strong point.. the actual rationing system coupons/cards/chips what ever would need to be pretty dam tight.

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