Price gouging is evidence of a failed market and not a consequence of capitalism. In the event of market failure, government intervention is often warranted unt

Price gouging is evidence of a failed market and not a consequence of capitalism. In the event of market failure, government intervention is often warranted until the market can correct itself. However, laws against price gouging are not the whole solution. Laws against price gouging do not prevent hoarding or panic buying. Thus, holding the price of the goods artificially low in the face of increased demand leads to shortages. (Unsurprisingly) If you have laws against price gouging you need to have laws that limit the number of units purchased to reduce hoarding. Otherwise, you inevitably will have short term shortages.