in a disaster, we want people to economize their use of goods and services and we want suppliers of these goods and services to produce more. Rising prices encourage these actions. Anti-price gouging laws stymy those incentives and create the pretense that a disaster does not exist.
# – # – # – # – #
Once again, the various levels of Gooferment can’t “manage a disaster” by eliminating “price gouging”!
The higher prices force economical acquisition and encourage increase supply. The more the “gouging” the greater the incentives.
I was at the grocery store today and there was no paper towels available at the $1.79 price as tagged on the shelf. Now if the store had raised its price to $17.99, then I’d bet there would have been “plenty” there.
I read somewhere that Walmart was selling canned corn on a special sale for 50¢ per can and couldn’t keep the shelves stocked. When they went back to the “normal” price of 79¢ per can, there was no problem. Such was the price sensitivity. A 60% rise eliminated “hoarding”!
When will the politicians and bureaucrats ever learn?
— 30 —