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Archive for October, 2016

Communist vs. Capitalist

What is the difference between communist and capitalist regimes when it comes to rationing a scarce resource? The answer (as everyone knows) is that capitalism uses market pricing to ration scarce resources, whereas communists will give them away at low cost, causing long queues to form.

Or is it the other way around?

Example from a capitalist country:

The scarcity of BART parking is the top gripe on Mr. Roadshow’s complaint line this year, making it the first time a highway has not held the top spot in the dozen years the “Dirty Dozen” list has been compiled.

BART has tried to ease the parking woes by offering monthly reserved parking permits. Permits guarantee riders a space in a designated reserved “Permit” area, as long as they arrive by 10 a.m. But of the 33 stations with reserved parking, all have waiting lists except for Millbrae and Daly City. That leaves many drivers vying for non-reserved spots, and those fill up early — in Fremont and West Oakland by 6:30 a.m.; at Walnut Creek and Fruitvale by 7 a.m.; at Castro Valley by 7:10 a.m.; and at Colma and South San Francisco by 7:30 a.m.

Example from a communist country:

A record number of bidders totaling 172,205 and a drop in nominal success rate to a historical low of 4.3 percent were seen at the monthly Shanghai car plate auction held today, which for the first time officially adopted a new bidding system promising improved experience.

A total of 7,441 car plates were up for grab among individual car buyers under a price ceiling of 75,200 yuan for the first-round bids, both the same as last month. The lowest winning bid went up 1,000 yuan to 80,000 yuan while the average price increased 921 yuan to 80,020 yuan.

A new bidding rule has been introduced to allow more room for price guessing in the second round. This change means one can bid with fewer restrains, which is believed to calm down the public outcry about not being guaranteed a bidding chance in the last minute when data transmission congestion often spikes and leads to glitches.

 

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