August 14, 2004
Charley and "Price Gouging"
As sure as night follows day, it won't be long until we hear that "price gouging" is part of Charley's aftermath. Here, Dwight Lee explains why laws against so-called price gouging actually hinder the recovery from a disaster. The essence of his argument--supply curves slope upward.
At the risk of seeming insensitive (again!), I pose the following question: Why should people who live nowhere near Florida be taxed to assist people who voluntarily choose to live there (indeed, often migrating there from other states)?
UPDATE: Not surprisingly, the brothers Bush recognize the politics of disaster assistance and have scrambled down to south Florida.
Posted by E. Frank Stephenson at 03:05 PM
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