Quantum Windbag
Gold Member
- May 9, 2010
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Imagine a world where we actually had a free market and people could get what they need.
Gas lines in New Jersey: The state needs more price gouging.
When I published my column making the case against legal bans on "price-gouging" in the wake of disasters, I got too primary negative reactions. Some folks were outraged that I'd be picking on this small topic amidst vast human tragedy. Others, like Chris Hayes, opined that my view was already conventional wisdom and barely counted as a Slatepitch.
But look at these photos of miles-long lines for gasoline in New Jersey and you'll see that there's a real issue here. The Christie administration fined a gas station for breaking price gouging rules back in September, and issued a press release before Sandy hit noting that case and explicitly warning retailers not to respond to the hurricane by raising prices. The failure to allow prices to adjust doesn't magically eliminate the supply side problems, it just means that the gasoline is misollacated and lots of people need to waste time in line. You can also see that the combination of shortage and underpricing seems to be leading people to overconsume when they do get to the front of the line.
Gas lines in New Jersey: The state needs more price gouging.