Flu Frenzy Proves Supply and Demand Principal

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I’ve stayed off this topic because it’s very annoying. I think that this is a manufactured crisis by the public and to a lesser extent the media. Most people do not get flu shots and the health care industry has to beg people most years to get the shots. It has become a self sustaining story. The press reports it the public reacts, the press reports the reaction as a story, the public reacts again for a new story for the press to file then the public panics and the press covers that, and it goes on and on until one side loses interest. Usually the public looses interest and the press files less and less stories until the cycle dies.

Just because the news reported that there was a shortage it created demand.
When supply becomes limited, demand goes up. This should lead to an increase in price and in turn an increase in producers to supply the demanded product. This is a simple and basic concept of economics.

I do understand that some people really need the shots, such as heart patients and those with other chronic medical conditions and that is great that they do. I’m glad Clinton and Chaney got their shots, I do not begrudge anyone for doing it.

I can’t help but look at the images on TV of long lines comprised of little old ladies huddling in blankets out in the cold at three in the morning, waiting for the supermarket to open so they can be one of the 200 to get their shot and ask my self a question; how many of them got the shot last year?


Vulture 6