rationing

rationing, allotment of scarce supplies, usually by governmental decree, to provide equitable distribution. It may be employed also to conserve economic resources and to reinforce price and production controls. Originally used in community emergencies and in distributing supplies to sailors, rationing was first organized on a national scale in Great Britain during World War I, and during World War II it spread to most of the world. The methods used have varied according to the degree of rationing needed and to the products. Rationing methods include specific rationing, or allotment in terms of physical units; point rationing, the allotment of points (ration stamps) to be apportioned by the user among commodities of a given group; and value rationing, allotment in terms of expenditure. Rations may be allotted to individuals, institutions, and industrial users, or to communities, as in rural areas of undeveloped countries. In universal rationing, ration currency is issued to everyone in equal amounts; in differential rationing, the allocation is based on need and may vary according to occupation, age, sex, or health. In the so-called flow-back system, ration currency, usually distributed by the government to the consumer, moves upward from the consumer level to the manufacturer or processor as the product moves down. During World War II, rationing in the United States was administered by the Office of Price Administration.

See W. A. Nielander, Wartime Food Rationing in the United States (1947).

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.

More on rationing from Fact Monster:

  • Food for Fighting - Food for Fighting “An army marches on its stomach” goes an old saying. Today, many ...
  • rationalism - rationalism rationalism [Lat.,=belonging to reason], in philosophy, a theory that holds that reason ...
  • Rational and Irrational Numbers - Rational and irrational numbers definitions, examples, and more.
  • defense mechanism - defense mechanism defense mechanism, in psychoanalysis, any of a variety of unconscious personality ...
  • rational number - rational number: rational number: see number.

See more Encyclopedia articles on: Economics: Terms and Concepts