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IPFS News Link • Price Gouging

In Defense of "Price Gouging"

• https://www.lewrockwell.com by Daniel Woolley

Some markets are extremely liquid and this price change happens quickly and frequently – for example the price you pay for gasoline. The same station might change its price up or down a few pennies every day. The vast majority of the time supply and demand move in small increments and changes in price are hardly noticeable.

However, there are times when markets are shocked. Hurricanes in FL might increase the demand for plywood while at the same time supply is diminished both in stores and through strained supply chains. This is where well-meaning politicians have often stepped in and enacted laws forcing business to keep prices at the level they were before the shock came. While well-intended, whether by law or a business owner's personal altruism, not raising prices in a time like this can hurt those it was most designed to help.


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