Category: prices

Burning Man: Experiencing Rationing



Susan and I went to Burning Man this year for our first time. We had a wonderful experience together with our friends Cindy and Robin (who is an experienced Burner and acted as our guide). There are many justified criticism of Burning Man and the festival will likely to have to change substantially over the coming years (a subject for a future post).

Today I want to write about the absence of prices at Burning Man. Once you get to Black Rock City, everything is free (well, not everything, as ice was $20/bag – more on that shortly). People have written about hopes and aspirations for a gift economy before but my key takeaway was about the importance of allocation mechanisms.

Without prices at Burning Man everything is rationed. You can go have a free drink at any of the bars (remember to bring your own cup and your ID – yes, that’s strictly enforced). But the bartenders will pour you a limited amount and then send you on your way. Same goes for all other goods and services. There are defined quantities available and that’s what you get.

Now “rationing” has a negative connotation but it isn’t inherently bad. It is a different allocation mechanism that has pros and cons when compared to the price mechanism. One advantage is that rationing treats people equally independent of their financial means, which can be desirable from a social cohesion perspective (well, rationing does that at least in theory – back (Read more...)

Burning Man: Experiencing Rationing



Susan and I went to Burning Man this year for our first time. We had a wonderful experience together with our friends Cindy and Robin (who is an experienced Burner and acted as our guide). There are many justified criticism of Burning Man and the festival will likely to have to change substantially over the coming years (a subject for a future post).

Today I want to write about the absence of prices at Burning Man. Once you get to Black Rock City, everything is free (well, not everything, as ice was $20/bag – more on that shortly). People have written about hopes and aspirations for a gift economy before but my key takeaway was about the importance of allocation mechanisms.

Without prices at Burning Man everything is rationed. You can go have a free drink at any of the bars (remember to bring your own cup and your ID – yes, that’s strictly enforced). But the bartenders will pour you a limited amount and then send you on your way. Same goes for all other goods and services. There are defined quantities available and that’s what you get.

Now “rationing” has a negative connotation but it isn’t inherently bad. It is a different allocation mechanism that has pros and cons when compared to the price mechanism. One advantage is that rationing treats people equally independent of their financial means, which can be desirable from a social cohesion perspective (well, rationing does that at least in theory – back (Read more...)

3 Insights From the FED’s Latest Economic Snapshot


This post is by Marcus Lu from Visual Capitalist


FED economic snapshot June 2022

3 Insights From the Latest U.S. Economic Data

Each month, the Federal Reserve Bank of New York publishes monthly economic snapshots.

To make this report accessible to a wider audience, we’ve identified the three most important takeaways from the report and compiled them into one infographic.

1. Growth figures in Q2 will make or break a recession

Generally speaking, a recession begins when an economy exhibits two consecutive quarters of negative GDP growth. Because U.S. GDP shrank by -1.5% in Q1 2022 (January to March), a lot rests on the Q2 figure (April to June) which should be released on July 28th.

Referencing strong business activity and continued growth in consumer spending, economists predict that U.S. GDP will grow by +2.1% in Q2. This would mark a decisive reversal from Q1, and put an end to recessionary fears for the time being.

Unfortunately, inflation is the top financial concern for Americans, and this is dampening consumer confidence. Shown below, the consumer confidence index reflects the public’s short-term outlook for income, business, and labor conditions.

consumer price index 2005 to 2022

Falling consumer confidence suggests that more people will delay big purchases such as cars, major appliances, and vacations.

2. The COVID-era housing boom could be over

Housing markets have been riding high since the beginning of the COVID-19 pandemic, but this run is likely coming to an end. Here’s a summary of what’s happened since 2020:

  • Lockdowns in early 2020 created lots of pent-up demand for homes
  • Greater household savings and record-low mortgage rates pushed (Read more...)