One of the reasons I am such a proponent of studying history (now that I am no longer in school) is that I believe if we don't know our history, we will most certainly repeat our mistakes. While this is an oft-used cliche, it is most certainly a truism.
Recently, Hawaiian legislators have decided to put a "price-cap" on gasoline prices. They have attempted to do this by capping wholesale sale prices. Have people forgotten why we had hyperinflation and gas lines in the 1970's? Apparently so.
It is quite simple, folks. If you put a cap on the price of an item in demand, shortages will occur. Hawaiian gas stations will need to begin rationing gas so that they can somewhat match supply with demand. When people get sick of the rationing, legislators will remove caps and cause prices to spike upward.
This example is not isolated. The same thing occurs because of rent-control in apartments, food in the former Soviet Union, etc. It is a very simple cause-and-effect and legislators in Hawaii are preparing to see it happen again. Hopefully, this virus will not spread.
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