Carl Denk wrote:
> The whole issue here is, unscrupulous people taking advantage.

Let's assume for a second that that disaster victims are normal people who=
=20
aren't stupid. When the "price gouger" gets on the scene, these normal=20
people have choices: they can buy the goods at inflated prices, get them=20
from another source, or do without.

When "price gouging" is made illegal, effectively it means that one of the=
=20
choices is eliminated. Are the victims now better off?

Let's look at how Florida defines price gouging:

"Florida Statute 501.160 states that during a state of emergency, it is=20
unlawful to sell, lease, offer to sell, or offer for lease essential=20
commodities, dwelling units, or self-storage facilities for an amount that=
=20
grossly exceeds the average price for that commodity during the 30 days=20
before the declaration of the state of emergency, unless the seller can=20
justifying the price by showing increases in its prices or market trends.=20
Examples of necessary commodities are food, ice, gas, and lumber."

In practice, what happens is a run on the stores after any emergency or=20
crisis. Since the stores aren't able to control demand via prices, very=20
quickly all you are left with, are empty shelves. You cannot buy anything,=
=20
at any price.

The dynamics of price controls were well understood back in the eighteenth=
=20
century, when Adam Smith argued against the corn laws that, while=20
well-intentioned, created famines.

Vitaliy=20

--=20
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