re: Price gouging laws predictably lead to shortages

quote:

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So tell me how the individual in this free market economy is being rewarded in a disaster area by price gouging?

Is it simply that you don't see it as price gouging but simple supply and demand when something goes up 500%

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My point is that the free market includes everything you see going on in the disaster area and around the country as aid, resources, and money flow in from individuals and corporation (whether they are motivated by compassion, good PR, religion, guilt, etc - all part of the free market). This part of the free market is effectively providing goods and services. If there are price gougers they will be undercut. If there are price gougers they may pay the long term price when things return to normal and people make them pay for a bad business decision. My point is there is very little evidence that government price gouging laws work or are needed.