The more you let markets work the better they work, even in disaster areas. From Brian McGlinchey at starkrealities.substack.com:
…and laws against it make bad situations worse
As millions of Americans struggle to recover from the latest hurricane, state government officials are issuing stern reminders that criminal penalties loom for anyone who engages in “price gouging.”
“Price gouging” is the pejorative label applied to the charging of substantially higher prices for goods and services that are in high demand and short supply in disaster-stricken areas. Anti-price gouging laws typically apply to things like food, fuel, lodging, medicine, building materials, construction tools and other necessities.
The idea of charging higher prices in the midst of a crisis goes against human impulses about fair play. However, a dispassionate examination of “price gouging” reveals that it actually benefits people in disaster areas — and confirms that, like other forms of price control, anti-price gouging laws make things worse for the people they’re supposed to benefit.
Before diving in, it’s essential to fully appreciate what prices are. They aren’t just numbers on cases of water, hotel signs or gas pumps. Embedded with information, prices transmit important signals to would-be buyers and sellers alike.
