To: combjelly who wrote (321690 ) 1/18/2007 9:02:33 PM From: TimF Read Replies (1) | Respond to of 1574616 "But exactly how much, and exactly where?" That is why businesses place orders. They don't need price signals, they look on their shelves and what they have in their back room Looking at the shelves and seeing what you have in the back room might tell you what you current have as supply, it doesn't give you a feeling for demand. Seeing nothing in the back room because you have sold it all, might indicate demand that is higher than what you had, but it doesn't tell you how much higher. And demand isn't simply units. If your giving it away at below market rates you inflate demand, people who might get any benefit from the good might buy it, not just people who need it most or quickest. "Look at FEMA and the way it dealt with ice for Katrina." All that demonstrated is why you appoint people who have a background in the job as opposed to purely political hacks with no background in the area. A lesser degree of the same sort of problem has happened before. FEMA could be made better, maybe much better but it would still have problems figuring out real demand. Centrally planing distribution of goods has inherent problems. In the really really short term, profit seekers can be more nimble. In between maybe a really efficient FEMA type organization (or large charity) can move in the vital life and death type stuff, but they can't cover all of the demand efficiently or really at all. Its job is the immediate disaster relief, and maybe some infrastructure rebuilding. Other goods and services will be provided for by normal market operations after the immediate disaster relief. It will happen quicker and more efficiently if prices are allowed to increase.