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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Practical Linguistics Semantics

By Megan McArdle
Sep 2 2009, 12:12 PM ET Comment

Let me see if I can make this even simpler:

1.  There is more than one meaning of the word rationing.  Economics is a young discipline, and hasn't had the opportunity to nail all its terms down as perfectly as philosophy has.  There is a fairly rare technical usage, which refers to any allocation of a scarce good: i.e. "price rationing versus fiat rationing".  Then there is the common usage of the term, which refers to a fiat system in which the government uses fiat in order to abrogate the price system and impose a different distribution of the aforementioned scarce goods.

2.  The former is a fact.  The latter is a mistake.

3.  It is no more technically incorrect to use both the common usage and the technical usage in discussing an issue than it would be to use "cost" in both the economist's sense--as any price, non-monetary or monetary, attached to an action--and in the common usage, as "price".

4.  My problem with the latter is that abrogating the price system generally results in a distribution and supply of goods that does not enhance the general welfare, or even, in the long run, the welfare of the people it is supposed to be helping.  (See, United Soviet Socialist Republics, economic history of).  There is substantial reason to believe that rationing in World War II led to sub-optimal material outcomes, whatever its moral or spiritual benefits.

5.  That said, Mr. Holbo is mistaken about the common usage.  Rationing does not have to control 100% of a relevant good in order to constitute rationing, and indeed, no government ever succeeded in doing so (or for that matter, tried particularly hard).  For example, during World War II, people who ate in restaurants could get around some rationing requirements in the US, and I believe also in Britain.  Taxicabs got preferred access to gasoline.  Both allowed the wealthy to "opt out" of the system.  Yet I hope we can both agree that rationing during World War II was in the common sense, rationing.


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