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Those laws do far more harm than good. Large price increases
Posted on: August 20, 2024 at 13:34:09 CT
JeffB MU
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are usually from a big jump in demand or a big drop in supply of the item or service in question.
Communists were probably the first to try and eliminate the pain associated with an imbalance between supply and demand with artificial suppression of prices via government mandate... with terrible consequences, of course.
In the US we saw that play out when oil supply dropped considerably. One instance OPEC formed a cabal and drastically reduced supplies. In another a hurricane hit Texas, knocking oil rigs in the gulf and refineries onshore out of production.
In both cases, the government decided that they were going to "help" people by prosecuting stations for "price gouging".
In a free market economy supply is distributed (or rationed) based upon price. In a communist country it is rationed by government agencies and bureaucrats.
In the US it resulted in 'rationing by running out'.
People ran out to fill the tanks in their cars, their lawnmowers, weed eaters and all of their gas tanks until... it was all gone.
Then ambulances, police departments and fire departments were left high and dry in many cases.
Price controls and laws on "price gouging" are counter productive and stupid.
Communists were probably the first to try and eliminate the pain associated with an imbalance between supply and demand with artificial suppression of prices via government mandate... with terrible consequences, of course.
In the US we saw that play out when oil supply dropped considerably. One instance OPEC formed a cabal and drastically reduced supplies. In another a hurricane hit Texas, knocking oil rigs in the gulf and refineries onshore out of production.
In both cases, the government decided that they were going to "help" people by prosecuting stations for "price gouging".
In a free market economy supply is distributed (or rationed) based upon price. In a communist country it is rationed by government agencies and bureaucrats.
In the US it resulted in 'rationing by running out'.
People ran out to fill the tanks in their cars, their lawnmowers, weed eaters and all of their gas tanks until... it was all gone.
Then ambulances, police departments and fire departments were left high and dry in many cases.
Price controls and laws on "price gouging" are counter productive and stupid.
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Those laws do far more harm than good. Large price increases - JeffB MU - 8/20 13:34:09