Giardiasis said:It's not appropriate because the government has no way of knowing what the stockpile should be. They can't perform a rational risk assessment as they don't have the knowledge that is dispersed among the thousands of people that buy and sell fuel, and they aren't the one's taking the risk. It is also not appropriate, because their method of changing the stockpile is to compel fuel companies and/or tax payers to hold a minimum stock level at the point of a gun.
"Why wouldn’t It be appropriate for a government to do a rational risk assessment of what could happen and put in place appropriate mitigations and take a wholistic approach vs expecting thousands of businesses and millions of individuals to coordinate to do the same vs all their other competing priorities? "
This argument can be applied throughout the whole economy. Who decides what should be produced/stored/developed? A planning board or a market. The moral answer and the one that leads to the greatest prosperity for all is the market.
You make some good points on who decides what. The market often fails in my opinion when there are large externalities that the decision makers in the market impose on others or the timeframe for seeing the outcome of a decision is long (smoking / asbestos).
Don’t get me wrong, I’m not implying we should build more stockpiles - but I don’t agreee the market will effectively factoring this into any decision making - I don’t see individuals/companies doing anything in this space.
If there is a breakdown there will be a run on inventories and the country will come to a halt. I’m not in a position to assess the cost to society but you imagine it could be large. While it’s quite affordable for everyone (individuals/companies) to buy some Jerry cans and hold a weeks worth of supply in their garage / warehouse it won’t happen until after *smile* goes wrong. I lived in Texas a decade or so ago and many people do exactly that as they are used to hurricane season and the potential consequences. If the risk is larger in Australia than it used to be my view is nothing will change until the scenario triggers once unless we are proactive in assessing if the risk has changed.
I think in our back and forth the approach you advocate will generally lead to reactive outcomes. Maybe that drives a better overall outcome as it means people react to real data and evidence vs an authority needing to take a position before the full consequences can actually be known - they aren’t going to get them all right. For me where you can see the potential for long term effects / externalities / new risks there is a role for intervention.