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Rationing

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'''Rationing''' is the controlled distribution of resources and scarcity scarce goods or services: it restricts how much people are allowed to buy or consume. Rationing controls the size of the '''ration''', one's allotted portion of the resources being distributed on a particular day or at a particular time.

Rationing in economics
In economics, it is often common to use the word "rationing" to refer to one of the roles that prices play in markets, while rationing (as the word is usually used) is called "non-price rationing." Using prices to ration means that those with the most money (or other assets) and who want a product the most get the largest amount, whereas non-price rationing follows other principles of distribution. Below, we discuss only the latter, dropping the "non-price" qualifier, to refer only to marketing done by an authority of some sort (often the government). In market economics, rationing artificially restricts demand. It is done to keep price below the equilibrium (market clearing market-clearing) price determined by the process of supply and demand in an free market unfettered market. Thus, rationing can be complementary to incomes policies price controls. An example of rationing in the face of rising prices took place in the Netherlands, where there was rationing of gasoline in the 1973 energy crisis. A reason for setting the price lower than would clear the market may be that there is a shortage, which would drive the market price very high. High prices, especially in the case of necessities, are unacceptable with regard to those who cannot afford them. In wartime, it is usually imperative for a government to maintain the support of this part of the population, to maintain "equality of sacrifice," especially since in most countries, the working-class and poor families contribute most of the soldiers. Rationing using coupons is only one kind of non-price rationing. For example, scarcity scarce products can be rationed using queues. This is seen, for example, at amusement parks, where one pays a price to get in and then need not pay any price to go on the rides. Similarly, in the absence of road pricing, which is infeasible in many or most cases, access to roads is rationed in a FIFO first come, first serve queueing process, leading to congestion. Authorities which introduce rationing often have to deal with the rationed goods being sold illegally on the black market.

Military rationing
Rationing has long been used in the military, especially the navy, to make supplies last for a defined duration, such as a voyage. To ration the supplies, they are divided up into equal portions for each person for each day, or even a meal, over the expected voyage period. The objective is to ensure that each person receives a fair share of supplies throughout the voyage. Often some reserve was also held. If supplies ran short or the voyage went longer than expected, the ration portions would be reduced. For example, ''half rations'' means the portions are cut in half, making the supplies last twice as long.

Civilian rationing
Rationing is often instituted during wartime for civilians as well. For example, each person may be given "ration coupons" allowing him or her to purchase a certain amount of a product each month. Rationing often includes food and other necessities for which there is a shortage, including materials needed for the war effort such as rubber tires, leather shoes, clothing and gasoline. Towards the end of the World War I First World War, panic buying in the United Kingdom prompted rationing of first sugar, then meat, for the rest of the war. During World War II rationing existed in many countries including the United Kingdom and the United States. The British Ministry of Food refined the process in the early 1940s to ensure the population did not starve when food imports were severely restricted and local production limited due to the large number of men fighting the war. Rationing did not end in the United Kingdom until the 1950s – see also Rationing in the United Kingdom during and after World War II. Civilian peace time rationing of food may also occur, especially after natural disasters, during contingencies, or even after failed governmental economic policies regarding production or distribution (the latter happening especially in highly centralized planned economies, such as North Korea, China during the 1970s and 1980s, Communist Romania during the 1980's, the Soviet Union in 1990-1991, and Cuba today. See also Rationing in the Soviet Union, Rationing in Communist Romania or Rationing in North Korea, austerity in Israel)

Medical care rationing
Republican Party (United States) Republican United States Senate Majority Leader Senate Majority Leader Bill Frist and other conservative Congressional Republicans have expressed concern about government rationing of health care services as a rationale for opposing provision of health care services via government programs. Frist, a cardiac surgery cardiac surgeon by profession, turned his Senate office into a makeshift clinic for Republican members of Congress to receive flu shots days prior to October 5, 2004, when the Federal government asked healthy adults to forego the vaccinations because of a nation-wide shortage.

Emergency rationing
Rationing of food and water may become necessary during an emergency, such as a natural disaster or Terrorism terror attack. The Federal Emergency Management Agency (FEMA) has established guidlines for civilians on rationing food and water supplies when replacements are not available. According to FEMA standards, every person should have a minimum of one quart per day of water, and more for children, nursing mothers, and the ill. Water should not be rationed in an emergency. Food, on the other hand, can be rationed for many days. More information is available in FEMA's [http://www.fema.gov/areyouready/ Are You Ready?] guide.

Sources
* Matt Gouras. "Frist Defends Flu Shots for Congress." ''Associated Press''. October 21, 2004.

See also
* blat Soviet era response to shortages * United States army rations * MRE * 10-in-1 food parcel

External links

- http://www.spartacus.schoolnet.co.uk/FWWrationing.htm
- http://www.youth.net/memories/hypermail/0189.html Category:Administration Category:Economics de:Rationierung sv:Ransonering

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