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Yes, anti-gouging laws are well-known for preventing supply increasing to meet the demand. https://hbr.org/2013/07/the-problem-with-price-gouging-laws https://
by kbutler 9y ago
Yes, anti-gouging laws are well-known for preventing supply increasing to meet the demand.
https://hbr.org/2013/07/the-problem-with-price-gouging-laws https://hbr.org/2013/07/the-problem-with-price-gouging-laws
"A well-known gouging case involves the invisible hand actions of John Shepperson. After the Hurricane Katrina disaster, John bought 19 generators, rented a U-Haul truck, and drove 600 miles from Kentucky to Mississippi. In return for his efforts and risk, he hoped to sell the generators at double his purchase price. Instead, he was arrested for price gouging, spent 4 days in jail, and the generators were confiscated. It’s a tricky issue: while Mr. Shepperson’s morality can be debated, his initiative would have unequivocally added supply and made some people better off. We all are charitable, of course, but how many of you would have rented a truck and driven twelve hundred miles round trip to sell generators for the price you purchased them?"
- erichocean 9y ago> Instead, he was arrested for price gouging, spent 4 days in jail, and the generators were confiscated. But we have a free market. /sarc