re: Price gouging laws predictably lead to shortages

Actually, it makes a lot of sense. If there is a finite amount of resources, those who need it most will pay the price to get it. Those who don't need it, won't pay for it.

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Having water sitting on the shelf, priced higher than liquid gold, prevents distribution.

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No, it prevents one customer from hoarding it all for himself. He won't/can't pay sky high prices, so he'll be compelled to buy only what he truly needs leaving water for the next customer, and the next.

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This makes no sense whatsoever. Price gouging interrupts the market distribution of goods. Having water sitting on the shelf, priced higher than liquid gold, prevents distribution. Price gouging destroys the natural market.

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Gouging sucks but I definitely understand the arguments for not intervening too much. Because people will hoard rather than just taking what they can get by with.

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This makes no sense whatsoever. Price gouging interrupts the market distribution of goods. Having water sitting on the shelf, priced higher than liquid gold, prevents distribution. Price gouging destroys the natural market.

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True story I often tell. Friend of family is preparing for Katrina. Has medical device that runs on batteries. Goes to Wally World. Battery bin has regular price posted over empty bin. Most people walked past took them "just in case".

Same thing at numerous other stores. Finally they decide to gas and evacuate. In gas station manned by Middle Easterners they have batteries behind the counter for 10X normal prices! She's outraged but buys them. Turns out she didn't need them.

To this day she loves her some Wal Mart that failed her in her time of need, but rants and raves against those evil, thieving, foreign profiteers who had her life sustaining batteries. She always gets angry with me when I point out reality to her!

Price= supply and demand! This is how the natural market works.

When you pass stupid laws you just change the natural market's name to the black market.

No it doesn't. Price gouging helps to prevent jerkoffs from buying 40 cases of water when they only need 2.