Difference between revisions of "Rationing"
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| − | '''Rationing''' is limiting the purchase or use of a good. Typically this term refers to rationing by the [[government]] when its policies result in a [[supply]] less than [[demand]]. | + | '''Rationing''' is limiting the purchase or use of a good. Typically this term refers to rationing by the [[government]] when its policies result in a [[supply]] less than [[demand]]. The alternative is to let the market system adjust, which will result in very high prices for common goods, generating severe discontent and even starvation. |
| − | + | One form of rationing is price controls, whereby the government limits the price that can be charged for a good. | |
| − | + | More common is coupon rationing. each person is given coupons for goods--usually on an equalitarian basis. To purchase an itrem a consumer must have both money and coupons--and the store has to have the goods. | |
| + | A '''black market''' transaction is the illegal sale of rationed goods, without coupons. A '''gray markey''' transaction is the buying and selling (or trading) of coupons. In wartime governments usually tolerate gray markets and crack down hard on black markets. | ||
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| + | Rationing during wartime is common in many countries, including the United States in [[World War II]] (but not in other American wars. | ||
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| + | ==World War II== | ||
| + | ===Australia=== | ||
| + | Essential goods requiring coupons were clothing, shoes, butter, tea, sugar, gasoline, and (from January 1944) meat. Clothing and footwear were rationed in June 1942, imposing a cut of about 40% on normal purchases for men and 33% for women, and 20% for children over five. Tea was rationed at 2 ozs. a week, sugar 1 lb. a week, butter 8 ozs. a week. Rationed at source of distribution were cigarettes, and tobacco, supplies of which have been cut 30 per cent; beer and spirits, cut one-third. Automobile tires were tightly controlled and available only to essential users. | ||
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| + | ==see also== | ||
| + | * [[American Homefront, World War II]] | ||
[[category:economics]] | [[category:economics]] | ||
Revision as of 23:01, June 4, 2009
Rationing is limiting the purchase or use of a good. Typically this term refers to rationing by the government when its policies result in a supply less than demand. The alternative is to let the market system adjust, which will result in very high prices for common goods, generating severe discontent and even starvation.
One form of rationing is price controls, whereby the government limits the price that can be charged for a good.
More common is coupon rationing. each person is given coupons for goods--usually on an equalitarian basis. To purchase an itrem a consumer must have both money and coupons--and the store has to have the goods.
A black market transaction is the illegal sale of rationed goods, without coupons. A gray markey transaction is the buying and selling (or trading) of coupons. In wartime governments usually tolerate gray markets and crack down hard on black markets.
Rationing during wartime is common in many countries, including the United States in World War II (but not in other American wars.
World War II
Australia
Essential goods requiring coupons were clothing, shoes, butter, tea, sugar, gasoline, and (from January 1944) meat. Clothing and footwear were rationed in June 1942, imposing a cut of about 40% on normal purchases for men and 33% for women, and 20% for children over five. Tea was rationed at 2 ozs. a week, sugar 1 lb. a week, butter 8 ozs. a week. Rationed at source of distribution were cigarettes, and tobacco, supplies of which have been cut 30 per cent; beer and spirits, cut one-third. Automobile tires were tightly controlled and available only to essential users.