re: Price gouging laws predictably lead to shortages

quote:

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During times of disaster, human nature expects compassion, not a harsh reality of supply and demand.

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Why is one exclusive of another??

IF they are running short of $0.99 water in Houston, what is wrong with someone in Dallas buying up a lot of that water and driving to Houston and selling it for $2.00 a bottle?

And what is right about someone being first in line and buying up all the $0.99 water to hoard in his garage??

Now if someone is really selling water at $20 a bottle, then that should be a signal that the demand is such that someone will be motivated to rush down there and sell for $10 a bottle, and then someone will think of rushing down there to sell at $5 a bottle, and then we are back to the $2 a bottle scenario - then everyone is better off than when the shelves are emptied out of $0.99 water in the first day, with nobody motivated to bring more in to sell at $0.99.

If you make a huge deal out of arresting and prosecuting that first $20 a bottle guy, and announce that "no price gouging will be tolerated" you are stuck with the empty shelves