If only they had read Thomas Sowell...

The emotional issue of "price gouging".

Pencils, Price Gouging, and Politics

I posted a comment on “price gouging” just yesterday and George Will has addressed the issue along with a review of economists Russell Robert’s book, “The Price of Everything: A Parable of Possibility and Prosperity." I just received the book myself and I intend to review it once I’m done.

Don’t Knock Price Gouging

Jim Cardoza has an interesting post over at Liberty Pen regarding price gouging at gas stations. I would add the following to his great comment: We understand the benefits of low prices but we have a harder time understanding the advantages of high prices. During a crisis, people will tend to panic and overstock on all essential items like gasoline. Higher prices tend discourage a mad dash to grab every drop of gasoline when there is not enough to go around. Ask yourself this regarding “price gouging,” would you rather have a gas station that decided not to raise prices to match demand and that ran out of gas or would you rather have a gas station that raised its prices to match scarcity and therefore never run out of gasoline during a crisis? Before you have an emotional response, think about it.