You Can’t Fix The RAT Race
Covid-19 rapid antigen tests are in short supply Australia-wide, with stock disappearing as soon as it hits shelves. The ACCC is threatening retailers with massive fines if they are caught selling RATs at “unfair” prices. But the move to force an artificial upper limit to what can be charged for something already so scarce could have disastrous effects. With prices dropping below what is set by the market, stock is going to sell out even faster, making it much harder for Australians to access RATs. The usual function of prices in directing goods where they are most needed fails under price controls.