Government officials waste no time threatening to crack down on “price gouging” during catastrophic events. Because they care. But of course they don’t. If they did, they’d let the market take care of pricing. Instead, they’ll deny storm victims the necessities they need to get through the disaster.
Vice President Kamala Harris has warned merchants and entrepreneurs that Big Brother Columbia is “monitoring” stricken areas “for allegations of fraud and price gouging and will hold those taking advantage of the situation accountable.” Federal Trade Commission Chair Lina M. Khan says “no American should have to worry about paying grossly inflated prices when fleeing a hurricane,” and promises that “in partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being ripped off by bad actors exploiting a crisis.”
Their rhetoric is meant to reassure. They are proud of themselves. And quite willing to claim scalps, even if means victims are unable to obtain the goods they desperately need. We refer again to the story of John Shepperson, which we have covered before:
In 2005, Shepperson, bought 19 generators at $500 each, loaded them on a rental truck, took time off from work, and drove 600 miles from his home in Kentucky to Mississippi, where the victims of Hurricane Katrina were in urgent need of electricity. According to economist Mark J. Perry, ‘John offered to sell his generators at twice the price he paid, to help cover his costs and make a profit.’ But rather than allow Shepperson to provide an in-demand product to willing buyers, the government arrested him. Shepperson was held for four days.
Meanwhile, the generators were seized by the government, says Perry, and ‘never made it to consumers with urgent needs who desperately wanted to buy them.’ […]
— Read More: issuesinsights.com
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